NEW YORK/WASHINGTON: The White House has hailed a new trade agreement with India, stating that the country has committed to no longer purchasing Russian oil, while Prime Minister Narendra Modi has also agreed to investments worth USD 500 billion across key American sectors.
The remarks were made by White House Press Secretary Karoline Leavitt on Tuesday.
“The President struck another great trade deal with India. He spoke with Prime Minister Modi directly. They share a very good relationship,” Leavitt told reporters.
“India is committed not only to no longer purchasing Russian oil, but also to buying oil from the United States, and potentially from Venezuela as well. This will have a direct benefit for the United States and the American people,” she said.
Leavitt added that Prime Minister Modi had also committed to USD 500 billion in investments in the United States, including in transportation, energy and agricultural sectors.
“So this is another great trade deal thanks to President Trump,” she said.
Earlier, speaking to Fox News about the India–US trade deal, Leavitt said the two leaders had a “great call” on Monday, following which the bilateral agreement was announced.
“When it comes to Prime Minister Modi, I know the President particularly enjoys their relationship and has a deep respect for the Prime Minister and for his country, India,” she said.
“They had a great call. It was very productive, and they struck a deal in which India agreed to stop purchasing Russian oil and to buy more American oil, and potentially oil from Venezuela as well.”
Leavitt added that Trump and his national security team are “now dictating” Venezuela’s oil commerce and sales.
“This directly benefits the American people. In addition, India has agreed to invest more in the United States following President Trump’s call to action,” she said.
She further noted that India had committed to USD 500 billion in purchases of US energy, transportation and agricultural products.
Leavitt said the US tariff on India would now stand at 18 per cent, while American exports to India would face zero tariffs, calling it “a great deal and a huge win for American workers, businesses and consumers”.
The Trump administration had earlier imposed tariffs of up to 50 per cent on India, including a 25 per cent penalty linked to New Delhi’s purchases of Russian oil.
In a Truth Social post on Monday, Trump said the US had agreed to lower its reciprocal tariff on India from 25 per cent to 18 per cent, while India would reduce its tariffs and non-tariff barriers against the United States to zero.
“The Prime Minister also committed to ‘BUY AMERICAN’ at a much higher level, including over $500 billion in US energy, technology, agricultural, coal and other products,” Trump said.
“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people who get things done,” he added.
Prime Minister Modi said it was “wonderful” to speak with his “dear friend” Trump.
“Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said.
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he added.
“President Trump’s leadership is vital for global peace, stability and prosperity. India fully supports his efforts for peace, and I look forward to working closely with him to take our partnership to unprecedented heights.”