calender_icon.png 4 February, 2026 | 6:46 AM

US-India trade deal boosts farm exports, targets Russian oil

04-02-2026 12:00:00 AM

Top American leaders have welcomed the trade agreement announced by US President Donald Trump with India, saying it will significantly expand American farm exports to the Indian market and strengthen efforts to counter Russian aggression, particularly amid the ongoing Ukraine war.

US Senate Foreign Relations Committee Chairman Senator Jim Risch congratulated President Trump on the deal, describing India as a “close partner” and the world’s largest democracy. He said the agreement would reduce trade barriers, encourage India to “buy American,” and help cut India’s support to Russia’s energy sector, thereby aiding efforts to end the war in Ukraine. Risch also highlighted India’s role in countering China’s influence in the Indo-Pacific.

US Secretary of Agriculture Brooke Rollins said the deal would export more American farm products to India’s massive market, lifting prices and benefiting rural America. She noted that the US agricultural trade deficit with India stood at $1.3 billion in 2024 and said the agreement would help reduce it, calling it another “America First” victory for farmers.

Secretary of the Interior Doug Burgum termed Trump the “Dealmaker in Chief,” stating that increased US energy purchases under the deal reflect effective energy diplomacy and strengthen both the economy and international ties.

Announcing the agreement on Truth Social, Trump said the US would reduce its reciprocal tariff on India from 25 per cent to 18 per cent, a move praised by Senator Lindsey Graham. Graham said India had “earned” the reduction and linked the deal to broader efforts to pressure Russia by discouraging purchases of Russian oil.

Trump said he and Prime Minister Narendra Modi discussed trade and ending the Russia-Ukraine war, adding that Modi agreed to stop buying Russian oil and significantly increase purchases from the US. The deal also includes India reducing tariffs and non-tariff barriers on US goods to zero and committing to buy over $500 billion worth of American energy, technology, agricultural, coal and other products.

Prime Minister Modi welcomed the agreement, thanking Trump for the tariff reduction on Made in India products and stating that cooperation between the two democracies would unlock immense opportunities and strengthen global peace, stability and prosperity.