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US-India Trade Deal Cuts Tariffs, Aims to End Ukraine War Through Energy Shift

US Ambassador to India Sergio Gor celebrated the "limitless potential" of the bilateral relationship following a phone call between President Donald Trump and Prime Minister Narendra Modi. President Trump announced a major new trade deal that will immediately reduce US tariffs on Indian goods. A key element of the agreement involves India committing to stop purchasing Russian oil and instead buy American energy and other products, which Trump claims will help end the war in Ukraine. Both leaders praised their personal friendship and the strengthened partnership, with India set to purchase hundreds of billions of dollars in US goods.

Key Points: US-India Reach Major Trade Deal, Trump Announces Post-Call with Modi

  • Major US-India trade deal announced
  • US tariffs on Indian goods cut from 25% to 18%
  • India to stop buying Russian oil, increase US purchases
  • Deal aims to help end the war in Ukraine
2 min read

India-US relationship has limitless potential: US Ambassador Gor

US Ambassador hails "limitless potential" as Trump and Modi agree on a trade deal cutting tariffs, shifting energy purchases from Russia to the US to help end the Ukraine war.

"The relationship between the United States and India has LIMITLESS POTENTIAL! - Sergio Gor"

New Delhi/Washington, Feb 2 US Ambassador to India, Sergio Gor, on Monday hailed the partnership between Washington and New Delhi, asserting that the relationship between the United States and India has "limitless potential".

Gor made the comment shortly after the US President Donald Trump spoke with Prime Minister Narendra Modi, a day before External Affairs Minister (EAM) S. Jaishankar begins a visit to the United States of America.

"As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!," he posted on X after the phone call between both leaders.

It was Gor who had first announced that Trump and PM Modi had spoken over the phone earlier in the evening.

"President Trump just spoke with Prime Minister Modi," Gor said in a social media post.

"STAY TUNED," he added, without giving further details.

Later, the US President said that India and the United States had reached a trade deal, outlining key elements after a phone conversation with Prime Minister Narendra Modi, whom he described as "one of my greatest friends."

In a detailed post on Truth Social, Trump said the agreement would immediately reduce the US reciprocal tariff on Indian goods from 25 per cent to 18 per cent, calling it a major shift in bilateral trade ties linked to energy cooperation and broader geopolitical goals.

Trump said the two leaders discussed "many things, including Trade, and ending the War with Russia and Ukraine." He claimed that PM Modi agreed to stop buying Russian oil and to increase purchases from the United States and, potentially, from Venezuela.

"This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!" Trump wrote.

According to Trump, the trade deal would take effect immediately. He said India would "move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO."

Trump also said PM Modi committed to "BUY AMERICAN" at a much higher level. He added that India would purchase "over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products."

"Our amazing relationship with India will be even stronger going forward," Trump wrote. "Prime Minister Modi and I are two people that GET THINGS DONE."

- IANS

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Reader Comments

S
Sarah B
While the trade deal sounds positive, I'm concerned about the claim that India will stop buying Russian oil. Energy security is paramount, and we must ensure any shift doesn't lead to higher fuel prices for the common man. The details matter.
V
Vikram M
"Limitless potential" is right! From tech collaboration to defense, this relationship can shape the 21st century. Proud to see India negotiating from a position of strength. The $500 billion purchase commitment is huge, but let's see the fine print on what we get in return.
P
Priya S
Good step forward. But I hope our farmers and MSMEs are protected. "Reducing barriers to zero" sounds good for American companies, but we must ensure a level playing field for our domestic industries too. Jai Hind!
R
Rohit P
The personal rapport between leaders helps, but foreign policy should be about national interest, not friendships. Hope EAM Jaishankar's visit ensures the deal benefits India strategically, not just commercially. The Ukraine war part is concerning—we should not be pulled into other conflicts.
M
Michael C
As someone working in the tech sector, closer US-India ties mean more opportunities for collaboration and innovation. This could be a game-changer for startups in Bangalore and Hyderabad. Exciting times ahead!

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