Trump said that Modi “agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela.”
India and the US have announced a key trade deal that includes reduced reciprocal tariffs of 18% from existing 25% on Indian imports. The $500 million trade pact was announced on Monday after Prime Minister Narendra Modi and US President Donald Trump had a telephonic conversation.
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Trump later said the two sides had concluded a trade deal whereby New Delhi will cut its tariffs to zero and buy American goods worth more than $500 billion. Track updates on India-US trade deal
The first mention of the phone call came from US ambassador Sergio Gor in the form of a social media post at 9.16 pm, followed by a lengthy post by Trump on Truth Social more than an hour later, and then a social media post by the PM almost two hours later.
The announcement concludes nearly 12 months of tense negotiations that saw bilateral ties nosedive and the US imposing some of the highest tariffs in the world on India as Trump administration for several months had been pressing India to cut its reliance on cheap Russian crude.
Why a trade deal now?
Trump on his social media said that Modi “agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela.”
“This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump said, as he termed PM Modi as one of his greatest friends and a powerful and respected leader of India.
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Trump further said he agreed to a trade deal “out of friendship and respect for Prime Minister Modi and, as per his request.”
“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%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” the US President said.
“The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products,” Trump further added.
What PM Modi said
PM Modi on Monday took to X as he thanked Trump for the reduced tariffs on “behalf of the 1.4 billion people of India”. He said Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace.
“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 wrote 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.
When two large economies and the…
— Narendra Modi (@narendramodi) February 2, 2026
Timeline of tariffs imposed by US on Indian goods
- April 2, 2025 — The US imposed a 26% “reciprocal tariff” on several Indian imports as part of its global “liberation day” tariff actions.
- April 10, 2025 – Trump paused the tariffs for 90 days and maintained a 10% duty on all U.S. imports.
- July 31, 2025- Trump announced a 25% tariff on all Indian goods and said it would levy a penalty if India continued to buy Russian oil.
- August 7, 2025 – Trump boosted tariffs to 50% on Indian goods being shipped to the U.S., citing the Asian country’s continued purchase of Russian oil. The tariff on Indian goods was the highest among US trade partners.
The article originally appeared on Hindustan Times
