On Monday, U.S. President Donald Trump announced a trade agreement with India after speaking with Prime Minister Narendra Modi. The deal includes reducing tariffs and replacing India’s purchase of Russian oil with Venezuelan crude.
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The agreement also stipulates that Washington will reduce reciprocal tariffs on Indian goods from 25% to 18%, while Modi pledged to eliminate barriers and increase U.S. imports, with investments exceeding US$500 billion.
Trump explained that the pact aims to “help end the war in Ukraine,” and emphasized that India will buy more oil from the U.S. and Venezuela. He praised Modi as “one of his best friends and a powerful leader,” and noted that India will also stop buying Iranian crude.
On Thursday, the Venezuelan Parliament approved reforms to the Organic Hydrocarbons Law to incentivize foreign investment in the oil sector. In a phone call, Modi and Venezuelan Acting President Delcy Rodriguez agreed to deepen energy cooperation.
Modi thanked the U.S. President for the new trade agreement and noted that cooperation between two major economies and the world’s “largest democracies” opens up mutually beneficial opportunities.
He praised Trump’s leadership as “vital” to global peace, stability, and prosperity, assuring that India fully supports his “peace” efforts. This rapprochement comes shortly after Modi and Russian President Vladimir Putin had agreed to a five-year economic partnership in December.
During that visit, Putin stressed that Russia was a reliable supplier of oil, gas, and coal to India. The two leaders discussed a Free Trade Agreement between India and the Eurasian Economic Union, a bloc led by Moscow, which reinforced energy and trade cooperation.
