US Trade Deal With India: Stressing on the ‘Make in India’ factor, Prime Minister Narendra Modi on Monday thanked US President Donald Trump soon after Washington confirmed a trade agreement with New Delhi
by reducing tariffs on Indian products from 50 percent to 18 percent.
Also See: India US Trade Deal Latest News | Stock Market Live Updates
Lauding Trump, Modi said his leadership is vital for global peace and he looks forward to closely working with the President to take the partnership between the United States and India to “unprecedented heights”.
“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,” Modi said in a post on X.
He said the new trade deal benefits the people when “two large economies and the world’s largest democracies work together”.
Also See: What Is India US Trade Deal
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he said.
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
“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 added.
Trump and PM Modi spoke over the phone about the new deal, following which the President posted about it on his Truth Social and said the United States will now charge a reduced reciprocal tariff, lowering it from 25 percent to 18 percent.
However, US ambassador to India Sergio Gor then confirmed that the tariffs on Indian products will be reduced from 50 percent — 25 percent reciprocal and 25 percent on oil previously applied — to 18 percent. These tariffs were a major reason behind stalled negotiations for the vital trade deal between the two countries, with Trump making it about India’s purchase of Russian oil.
Calling it an “exciting new phase”, Indian ambassador to the US Vinay Mohan Kwatra congratulated Modi saying this deal is a “big win” under Modi’s leadership.
“A big win for a consequential partnership under the leadership of Prime Minister Narendra Modi and President Donald Trump. India and USA announce trade deal creating vast new opportunities for the two economies and the people of our two great nations. Today’s announcements herald an exciting new phase in our partnership,” Kwatra said in a post on X.
A big WIN for a consequential partnership under the leadership of Prime Minister Narendra Modi @narendramodi and President Donald Trump @POTUS
— Amb Vinay Mohan Kwatra (@AmbVMKwatra) February 2, 2026
India and USA announce trade deal
creating vast new opportunities for the two economies and the people of our two great nations.… https://t.co/kzuwBm25KX
Modi, however, did not mention Trump’s assertion that India will reduce tariffs on US goods to zero and stop buying Russian oil.
WHAT DID DONALD TRUMP SAY?
On his social media, Donald Trump called the agreement with India a major shift in bilateral trade ties linked to energy cooperation and broader geopolitical goals.
About their phone call, he said he and Modi discussed “many things, including trade, and ending the war with Russia and Ukraine”. He claimed that Modi agreed to stop buying Russian oil and to increase purchases from the US and, potentially, from 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 wrote, adding that the trade deal will immediately take effect. He claimed that India will “move forward to reduce their tariffs and Non Tariff Barriers against the United States, to ZERO”.
(With agency inputs)
