Highlights:
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India agrees to stop purchasing Russian oil and increase imports from the United States and potentially Venezuela
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Karoline Leavitt confirms $500 billion Indian investment plan across US energy, transportation, and agriculture sectors
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US lowers tariffs on Indian goods from 25 percent to 18 percent
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American exports to India will face zero tariffs under the agreement
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Trade deal follows direct talks between President Donald Trump and Prime Minister Narendra Modi
White House Press Secretary Karoline Leavitt confirmed that India has agreed to stop purchasing Russian oil as part of a major new trade agreement between the United States and India. The agreement, announced by the White House, includes commitments for expanded energy cooperation, tariff reductions, and significant Indian investment in American industries.
According to Karoline Leavitt, the deal was finalized following direct discussions between President Donald Trump and Indian Prime Minister Narendra Modi. The agreement represents a broader effort to strengthen economic and trade ties between the two countries while adjusting global energy supply partnerships.
“The President struck another great trade deal with India,” Leavitt told reporters. “He spoke with Prime Minister Modi directly. They share a very good relationship.”
The announcement marks a shift in India’s energy procurement strategy. India, which has been a major buyer of Russian crude oil in recent years, has now committed to gradually ending those purchases and redirecting supply agreements toward the United States and potentially Venezuela.
Karoline Leavitt Details Energy Supply Changes and US Economic Impact
Karoline Leavitt emphasized that India’s decision to halt Russian oil imports would directly support the US energy sector. She explained that increased Indian demand for American oil could benefit domestic producers and workers while expanding bilateral trade activity.
“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,” Leavitt said, adding that the move would support US energy producers and workers.
The White House described the agreement as a strategic step that aligns economic interests and strengthens supply chain reliability. By shifting oil imports, India is expected to diversify its energy sources while deepening its commercial partnership with the United States.
Karoline Leavitt Confirms $500 Billion Indian Investment in US Sectors
A key component of the agreement involves a large-scale Indian investment commitment in the United States. Karoline Leavitt confirmed that Prime Minister Modi has pledged investments and purchases totaling $500 billion across multiple sectors.
These investments are expected to focus on energy infrastructure, transportation systems, and agricultural development. The White House indicated that this investment framework is designed to promote job creation, infrastructure expansion, and long-term commercial collaboration between the two countries.
The agreement also includes expanded procurement of American goods. According to details shared by the administration, India plans to increase purchases of US energy products, technology, agricultural goods, coal, and other materials over the coming years.
Karoline Leavitt Explains Tariff Changes Under US-India Trade Agreement
Karoline Leavitt confirmed that the trade agreement includes substantial tariff revisions affecting both countries. Under the new framework, the United States will reduce tariffs on Indian goods from 25 percent to 18 percent.
At the same time, American exports entering India will face zero tariffs. The White House described this change as a measure designed to improve market access for US businesses and expand export opportunities.
Previously, the Trump administration had imposed tariffs of up to 50 percent on certain Indian products. These included a 25 percent penalty tied to India’s continued purchases of Russian oil. The new agreement eliminates those punitive measures and replaces them with reduced reciprocal tariffs.
President Trump outlined additional details of the agreement through a social media statement, indicating that India would remove both tariff and non-tariff barriers for US goods. He also stated that India would significantly increase purchases of American products under a “Buy American” approach.
“Our amazing relationship with India will be even stronger going forward,” Trump wrote. “Prime Minister Modi and I are two people who get things done.”
Karoline Leavitt Highlights Strengthening US-India Strategic Partnership
Karoline Leavitt described the trade agreement as part of broader diplomatic and economic coordination between Washington and New Delhi. The White House presented the deal as strengthening ties between two major global economies while expanding collaboration across multiple industries.
Prime Minister Narendra Modi also welcomed the agreement and highlighted its potential impact on bilateral cooperation. He emphasized that closer economic coordination between India and the United States could generate benefits for both countries.
“When two large economies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi said, adding that India looks forward to taking the partnership with the United States to unprecedented heights.
The trade agreement signals a major adjustment in India’s energy sourcing strategy and establishes new frameworks for investment and trade expansion. Karoline Leavitt’s announcement underscores the administration’s position that the agreement supports economic growth, job creation, and expanded market access while reinforcing diplomatic ties between the United States and India.
