India to invest $500 billion in US, stop Russian oil purchases: White House
Leavitt said the two leaders had a great call on Monday, following which the bilateral trade deal was announced.
Leavitt said the two leaders had a great call on Monday, following which the bilateral trade deal was announced.
Leavitt said the two leaders had a great call on Monday, following which the bilateral trade deal was announced.
The White House on Tuesday said India has agreed to invest USD 500 billion across key American sectors and to stop purchasing Russian oil under a new trade agreement with the United States. White House Press Secretary Karoline Leavitt said the commitment followed a phone call between US President Donald Trump and Prime Minister Narendra Modi on Monday.
"The President struck another trade deal with India. India is committed to no longer purchasing Russian oil and to buying oil from the United States, and potentially from Venezuela as well," Leavitt told reporters, adding that the move would benefit American workers and consumers.
Leavitt said Prime Minister Modi also committed to USD 500 billion in investments in the United States, including in transportation, energy and agriculture. She said the US tariff on Indian goods would be reduced to 18 per cent, while American exports to India would face zero tariffs.
Earlier, speaking to reporters, Leavitt said Trump and Modi shared a "very productive" call that led to the agreement. She reiterated that India would stop buying Russian oil and instead increase purchases from the US, with possible imports from Venezuela as well. Leavitt also said the Trump administration was now "dictating" the commerce of Venezuela and its oil sales.
The Trump administration had earlier imposed tariffs of up to 50 per cent on Indian goods, including a 25 per cent levy linked to India's purchases of Russian oil. In a post on Truth Social, Trump said the US would immediately lower reciprocal tariffs on Indian goods from 25 per cent to 18 per cent. He added that India would reduce its tariffs and non-tariff barriers against the US to “zero” and significantly increase purchases of American energy, technology, agricultural and coal products.
"Our relationship with India will be even stronger going forward," Trump said. Prime Minister Modi welcomed the tariff reduction, calling it a positive development for Indian exports. "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 announcement," Modi said.
He added that cooperation between the two countries would unlock opportunities for mutual growth and said India supported Trump's efforts for global peace and stability.