'Unlocks immense opportunities': Modi thanks Trump for tariff reduction
What's the story
Prime Minister Narendra Modi has thanked United States President Donald Trump for reducing tariffs on Indian goods from 25% to 18%. Trump announced this on the social media platform Truth Social. "Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%," PM Modi said in a post on X, adding, "When...the world's largest democracies work together, it benefits our people and unlocks immense opportunities."
Diplomatic relations
President Trump's leadership vital for global peace: Modi
PM Modi also thanked Trump "on behalf of the 1.4 billion people of India for this wonderful announcement." He stressed that the engagement of the two large economies and the "world's largest democracies" would be beneficial to their people and would unlock "immense opportunities." "President Trump's leadership is vital for global peace, stability, and prosperity," he added.
Twitter Post
PM Modi's reaction to reduced tariffs
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.
— Narendra Modi (@narendramodi) February 2, 2026
When two large economies and the…
Trade relations
USISPF welcomes tariff reduction as 1st step toward trade deal
In his announcement, Trump called PM Modi "one of my greatest friends, and a powerful and respected leader of his country." The US India Strategic Partnership Forum (USISPF) welcomed the tariff reduction as an important first step toward a comprehensive bilateral trade agreement. While details are still pending, this announcement indicates strong political will on both sides to address tariffs and market access issues across various sectors.
Tariff history
US had imposed tariffs in August last year
The US had boosted tariffs on Indian goods to 50% in August 2025, citing India's continued purchase of Russian oil. In April that year, Trump had first imposed a 26% "reciprocal tariff" on several Indian imports under his global "liberation day" actions. He later paused these tariffs for 90 days while maintaining a 10% duty on all US imports before announcing the increase to 25%.
Trade deal
India to reduce tariffs against US to zero
Trump announced the trade deal with India, following a telephone conversation with PM Modi. Apart from the US reducing tariffs on Indian goods from 25% to 18%, India has agreed to stop importing Russian oil and instead purchase more than $500 billion worth of US energy, technology, agricultural, and other products. 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."