White House Unveils Details of Landmark India-US Trade Agreement
US White House Press Secretary Karoline Leavitt on Wednesday provided comprehensive insights into the newly announced India-US trade deal, highlighting the cordial relationship between US President Donald Trump and Indian Prime Minister Narendra Modi that facilitated this significant bilateral agreement.
Strategic Shift in India's Energy Policy
In a notable development, Leavitt claimed that Prime Minister Modi has agreed to cease purchasing Russian oil and instead source petroleum products from the United States, with potential additional imports from Venezuela. This represents a substantial shift in India's energy procurement strategy, given that Russia currently supplies more than one-third of India's total oil imports.
"They had a great call, and it was very productive yesterday, and they struck a deal in which India has agreed to stop purchasing Russian oil and to purchase more American oil from the USA and potentially from Venezuela too," Leavitt stated during her appearance on Fox News on Tuesday.
Reciprocal Tariff Reductions and Agricultural Benefits
The trade agreement, announced by President Trump a day earlier, includes significant tariff adjustments. Washington will reduce reciprocal tariffs on Indian goods to 18 percent from the current 25 percent. Meanwhile, American exports to India would face zero tariffs under the proposed arrangement, creating potentially substantial benefits for US agricultural producers and other exporters.
"US tariff on India would be on 18 percent. But American exports to India would face a tariff of zero percent. This is a great deal and a huge win for American workers, businesses and consumers alike," Leavitt emphasized during her remarks.
Strengthening Bilateral Economic Ties
The Press Secretary highlighted the strong personal rapport between the two leaders as a key factor in reaching this agreement. "I have the great honour and pleasure of seeing President Trump interact with leaders all around the world. When it comes to Prime Minister Modi, I know he particularly enjoys the relationship and has a deep respect for the prime minister and for his country of India," Leavitt noted.
According to Leavitt, Prime Minister Modi has committed to purchasing $500 billion worth of US energy, transportation, and agricultural products, representing a massive boost to bilateral trade relations. Additionally, India has agreed to increase investment in the United States following President Trump's call to action.
Current Status and Official Responses
While the White House has provided these details, the Indian government has not yet issued an official statement confirming all aspects of the agreement. The information currently available stems primarily from tweets by President Trump, Prime Minister Modi, and Indian cabinet ministers.
Notably, the Indian side has only confirmed the reduction of reciprocal tariffs to 18 percent, without commenting on the Russian oil component or the zero-tariff arrangement for US exports to India.
Background Context and Industry Impact
India has been importing approximately 1.5 million barrels of Russian oil daily, according to data from global trade provider Kpler cited by CNN. This substantial volume continues despite previous punitive tariffs imposed by the Trump administration on Indian goods.
On the Indian political front, Union Commerce and Industry Minister Piyush Goyal launched a strong defense of the trade deal on Tuesday, February 3, 2026, criticizing opposition parties, particularly Congress leader Rahul Gandhi, for their skepticism about the agreement. Goyal confirmed that the deal is in the final stages of detailing between negotiating teams.
Key Implications of the Agreement
- India's commitment to cease Russian oil imports marks a pivotal strategic shift in its energy policy and international alignments
- The comprehensive trade deal aims to foster significantly deeper economic ties between India and the United States
- Reciprocal tariff reductions will benefit businesses and consumers in both nations through improved market access
- The agreement represents a major diplomatic achievement for both administrations amid complex global trade dynamics
- Increased US energy exports to India could reshape global oil trade patterns and strengthen bilateral energy security cooperation
The India-US trade agreement, as detailed by White House officials, represents one of the most substantial bilateral economic partnerships announced in recent years, with potential to significantly impact global trade patterns, energy markets, and geopolitical relationships in the Indo-Pacific region.
