India and the United States have announced a long-awaited trade breakthrough after a phone call between Prime Minister Narendra Modi and US President Donald Trump. The headline move: lower US tariffs on Indian goods, now fixed at 18%. But beyond that, Trump has made sweeping claims — from a $500 billion buying spree to India halting Russian oil imports — that New Delhi has not fully confirmed yet.
So, what’s actually agreed, and what’s still up in the air? Here’s a clear, no-frills breakdown.
The big headline: US cuts tariffs on Indian goods
The most concrete outcome so far is the tariff relief. Indian exports to the US will now face an 18% reciprocal tariff, down from 25%. This also places India at a slightly better position than Pakistan, whose exports reportedly face a 19% rate.
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PM Modi confirmed the tariff cut publicly after the call, calling it a boost for “Made in India” products and a positive step for both economies. Union minister Ashwini Vaishnaw later said India and the US had reached a “win-win” trade deal that would benefit industries and consumers on both sides.
What India hasn’t officially confirmed yet are the bigger claims coming from Washington.
Trump’s version: zero tariffs, $500 billion buys
In a detailed post on Truth Social, President Trump said the agreement goes far beyond tariff cuts. According to him, India has agreed to:
– Reduce tariffs and non-tariff barriers on US goods to zero
– Buy more than $500 billion worth of US energy, technology, agriculture and other products
– Dramatically increase purchases of American oil and gas
Trump framed the deal as effective immediately and described Modi as a close friend and a leader who “gets things done.”
However, Indian statements so far stop short of confirming zero tariffs or a $500 billion purchase commitment.
The Russian oil question
One of the most sensitive claims is Trump’s assertion that India will stop buying Russian oil and shift energy imports to the US, and possibly Venezuela. A White House official told US media that a 25% punitive tariff — earlier linked to India’s Russian oil imports — would be dropped as part of this understanding, bringing the final tariff down to 18%.
Indian officials, including PM Modi and senior ministers, have not publicly confirmed any commitment to halt Russian oil imports. For now, this remains a claim from the US side rather than a jointly stated position.
How the announcement unfolded
The sequence itself was telling. The first hint came from the US Ambassador to India on social media, followed by Trump’s detailed post over an hour later. Modi’s confirmation of the tariff cut came roughly two hours after Trump’s statement.
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While all sides agree on tariff relief, the lack of a published trade agreement text has left room for different interpretations.
Why this deal matters
The announcement ends nearly a year of tense negotiations that had seen India facing some of the highest US tariffs globally. Talks began during Modi’s US visit last year and included multiple rounds, with disputes over trade barriers, Russian energy ties, immigration rules and defence cooperation.
The timing is also notable. It comes just days after India sealed a major trade pact with the European Union, signalling a broader push to secure market access amid shifting global trade dynamics.
What we know for sure — and what we don’t
Confirmed:
– US tariffs on Indian goods cut to 18%
– India and the US acknowledge a trade understanding
– Punitive oil-linked tariffs from the US side are being withdrawn
Not officially confirmed by India:
– Zero tariffs on US goods
– $500 billion purchase commitment
– A complete halt to Russian oil imports
Until the full text of the deal is released, the finer details will remain under scrutiny.
