Trump Announces A Trade Deal WIth India

US and India Reach Major Trade Deal, Trump Announces After Call with Modi

February 2,2026

The United States and India have agreed to a significant trade deal following a phone call between US President Donald Trump and Indian Prime Minister Narendra Modi, President Trump has announced.

In a post on Truth Social, Mr. Trump said the agreement would see reciprocal tariffs on Indian goods entering the US slashed from 25% to 18%, and that India will reduce its own tariffs and non-tariff barriers on American products potentially to zero. (Business Standard)

Trump also said India has agreed to stop buying Russian oil a major point of contention between the two countries and commit to purchasing greater quantities of US goods, including energy, technology, agriculture and coal. (Business Standard)

“It was an honour to speak with Prime Minister Modi... He agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela,” Trump wrote. (Business Standard)

In response, Prime Minister Modi thanked President Trump on social media, saying on X that he was “delighted” with the announcement and that the partnership between the two largest democracies would benefit both nations. (Business Standard)

The deal comes after months of trade tensions, during which the US had imposed higher tariffs on Indian imports, including penalties linked to India’s continued purchase of Russian crude oil. (Business Standard)

Trade analysts say the agreement could reshape economic relations between Washington and New Delhi, but details on implementation and confirmation from Indian officials are still pending. (Business Standard)

source: BBC News