The US and India Reach Agreement on Oil Purchases: Reuters

The trade agreement between the US and India pertains to India's purchases of petroleum products, defense, pharmaceuticals, telecommunications, and aviation sectors, reports Reuters, citing an Indian government official.

Earlier, US President Donald Trump announced the signing of a trade agreement with India, which stipulates a 18% reduction in reciprocal tariffs. The new tariff rate will be the lowest among all countries in the Indian subcontinent.

The obligation to purchase American goods covers sectors such as pharmaceuticals, telecommunications, defense, petroleum products, and aviation, the agency quoted the official as saying. Furthermore, according to the source, India has granted the US access to certain agricultural product markets.

The official noted that the current trade agreement is only the first phase, and a more comprehensive agreement will be discussed in the coming months. On August 27, 2025, Trump imposed an additional 25% tariff on goods imported from India, raising the overall tariff rate to 50%, one of the highest in the United States.

The republic has called the US measures "unfounded and unfair," but emphasized its willingness to engage in dialogue and pursue further compromises.