United States President Donald Trump announced a “trade deal” with India on Monday after speaking to Prime Minister Narendra Modi, saying New Delhi agreed to stop buying Russian oil and may purchase it instead from Venezuela.

In a post on social media platform Truth Social, the US president said that he and the Indian premier spoke about “many things”, including trade and the ongoing war between Russia and Ukraine.

Trump added that “out of friendship and respect” for Modi, the US would lower its reciprocal tariff rate from 25 per cent to 18pc, while India would reduce tariffs on US goods to zero.

“He (Modi) agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela,” Trump wrote, adding that this would “end the war” between Russia and Ukraine.

The US president, calling Modi “one of my greatest friends, and a powerful and respected leader of his country”, said that he agreed to “buy American” at a much higher level.

Trump added that India would buy, “over $500 billion of US energy, technology, agricultural, coal, and many other products”.

Later, Modi took to X to hail the discussion and express his happiness with the reduced tariffs.

“Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” he wrote.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi said.

The Indian prime minister called Trump’s leadership is “vital for global peace, stability, and prosperity”, adding that New Delhi fully supports his efforts.

“I look forward to working closely with him to take our partnership to unprecedented heights,” Modi said.

The United States is effectively overseeing Venezuelan oil exports since toppling the South American country’s leader Nicolas Maduro in a military operation in January.

Trump hit India, the world’s most populous nation, with 25pc reciprocal levies during his waves of “Liberation Day” tariffs last year. He then stacked another 25pc on top of that over India’s purchases of Russian oil.

Modi was one of the first leaders to visit the White House after Trump’s inauguration for his second term in January 2025, but that has not stopped difficult trade negotiations over the past year.

Trump also said in October that Modi had promised to stop buying Russian oil, but an agreement did not materialise at the time.