India US Tariffs Cut: Trump announces India trade deal, cuts reciprocal tariffs to 18% after call with Modi

US President Donald Trump on Monday announced a reduction in reciprocal tariffs on Indian goods from 25 per cent to 18 per cent following a telephone conversation with Prime Minister Narendra Modi, signalling a thaw in bilateral ties that had been strained by steep trade barriers.

Responding to United States President Donald Trump’s post on Truth Social, Modi said Made in India products would now face a reduced tariff of 18 per cent and expressed appreciation for the announcement on behalf of India’s population.

According to a report by Reuters, the Donald Trump administration will also lift an additional 25 per cent tariff imposed over India’s purchases of Russian oil, with a White House official informing that the levy would be dropped following India’s agreement to stop buying Russian oil.

The announcement came after a period of anticipation, during which Trump shared an image of himself with Modi on Truth Social without accompanying text.

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

Providing further clarity on the long-pending US-India trade agreement, which had faced obstacles amid New Delhi’s resistance to opening its agriculture sector to Washington, Trump stated that a deal was now in place. He said the decision to lower tariffs followed discussions with Modi and was made as a gesture of friendship and respect, adding that the agreement would take effect immediately.

Also Read: India US Trade Deal

Donald Trump further stated that during the call, Modi had agreed to stop purchasing Russian oil and to redirect India’s oil imports towards the United States and Venezuela. He said this move would contribute to ending the war in Ukraine and claimed that India would also move to reduce its tariffs and non-tariff barriers against the United States to zero.

Describing the conversation as an honour, Trump called PM Modi a close friend and a respected leader, and added that the talks covered trade and efforts to end the Russia-Ukraine war. He also claimed that Modi had committed to buying more than $500 billion worth of American energy, technology, agricultural products, coal and other goods, asserting that both leaders were capable of delivering outcomes.