The United States and India have reportedly agreed on a new trade deal that will lower Tariffs against the latter, a big shift for the BRICS country. US President Donald Trump said Monday he will lower his extra 25% tariff on Indian goods to 18% after Prime Minister Narendra Modi agreed to stop buying Russian crude.

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” Trump wrote in a post to Truth Social. “They will likewise move forward to reduce their Tariffs and non-tariff barriers against the United States to ZERO. The Prime Minister also committed to “BUY AMERICAN” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward”

Prime Minister Modi also confirmed he and Trump reached a deal on Monday in a post on X. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” he wrote.

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In addition to the tariff terms of the deal, Modi also committed to buy more than $500 billion dollars worth of U.S. energy, technology, agricultural, and other products, Trump added. India also agreed to reduce its tariffs and non-tariff Barriers against the U.S. to zero.

The news marks a major shift in tone for India, which serves as the chair country of the BRICS alliance. Additionally, India and the European Union signed a free-trade agreement last Tuesday in an effort to deepen economic ties, a move that was denounced by Trump. While European Union is India’s largest trading partner as an economic bloc, the US continues to serve as India’s single largest trading partner.

The remainder of the BRICS bloc: Russia, Brazil, China, and South Africa, have yet to publicly respond to the announced deal. However, a response will likely come with a bit of pushback.