India-US trade deal finalized; tariffs cut from 25% to 18%
What's the story
US President Donald Trump has announced a major trade deal with India, following a phone conversation with Prime Minister Narendra Modi. The agreement will see the US reduce tariffs on Indian goods from 25% to 18%. In return, India has agreed to stop importing Russian oil and instead purchase more than $500 billion worth of US energy, technology, agricultural, and other products.
Agreement details
India to reduce tariffs against the US to zero
Trump elaborated on the trade deal, noting India's commitment to stop buying Russian oil and increase purchases from the US and possibly Venezuela. He said this would "help end the war in Ukraine." The US President also said that India would reduce tariffs and non-tariff barriers against the US to zero as part of their agreement.
Response
PM Modi thanks Trump for announcement
PM Modi took to social media platform X, thanking President Trump for the announcement and welcoming the reduction in US tariffs. 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%." Modi also emphasized that cooperation between two large economies would unlock opportunities for mutually beneficial cooperation.
Personal note
Modi commits to 'BUY AMERICAN': Trump
Trump said that it was "an honour" to speak to PM Modi, calling him one of his "greatest friends". He said they discussed many topics including trade and ending the war between Russia and Ukraine. The US President also revealed that Modi has committed to "BUY AMERICAN," at a much higher level, in addition to over $500 billion worth of US energy, technology, agricultural, and coal, among other products.
Twitter Post
Here is Trump's original message shared on Truth Social
— Rapid Response 47 (@RapidResponse47) February 2, 2026