The United States and India have reached a landmark trade deal after months of negotiations, with the Donald Trump administration cutting down tariffs on Indian imports from 50% to 18%, envoy Sergio Gor has confirmed.
“All the credit goes to President Trump and PM Modi. The two leaders have a great personal relationship, which has carried the deal forward. The number that will be finalised will be 18%,” Gor told CNN-NEWS18’s Zakka Jacob.
India had been facing 50% US tariffs, including 25% penalty for the purchase of Russian oil.
#MegaExclusive | All the credit goes to President Trump and PM Modi. The two leaders have a great personal relationship which has carried the deal forward. The number that will finalised will be 18%: Sergio Gor, @USAmbIndia#IndiaUSTradeDeal
| @Zakka_Jacob pic.twitter.com/ZVJBWuZHZb
— News18 (@CNNnews18) February 2, 2026
Calling the announcement “incredible news”, Gor said this is a “new era” and asserted that the US is open to business.
“As you saw the President’s Truth Social post, part of agreement is all nations around the world stop buying oil from Russia in order to bring peace to the situation. I know that the Prime Minister deeply cares about bringing peace in the conflict as does President Trump so the number that will be finalised is 18%,” he said.
Gor highlighted that the “limitless” potential between India and the US and said, “We have incredible deals ahead… and the best is yet to come.”
Trump-Modi Phone Call
Trump spoke with Prime Minister Narendra Modi earlier today and later announced that the trade deal with India would cut tariffs to 25%. He claimed that PM Modi has agreed to stop buying Russian oil and buy much more from the US and Venezuela.
“… 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 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 wrote on Truth Social.
Reacting to Trump’s announcement, the Prime Minister thanked the US President and said his leadership is vital for global peace, stability, and prosperity.
“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 world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” he wrote on X.
