New Delhi, Updated At: 08:42 AM Feb 03, 2026 IST
US President Donald Trump on Monday said Washington and New Delhi had agreed to a trade deal under which reciprocal tariffs on Indian goods would be cut to 18 per cent from 50 per cent, following a phone call with Prime Minister Narendra Modi.
The 25 per cent penal tariff the US had imposed on India over purchases of Russian crude has been removed, US embassy spokesperson Chris Elms confirmed.
Prime Minister Modi welcomed the reduction, calling it a positive step for bilateral ties. In a post on X he said he was “delighted that Made in India products will now have a reduced tariff of 18 per cent” and thanked Trump “on behalf of the 1.4 billion people of India.” Modi added that cooperation between the two large democracies benefits their people and opens up opportunities, and said he looked forward to taking the India‑US partnership “to unprecedented heights.”
US Ambassador to India Sergio Gor, who first announced the Modi‑Trump call, said the two leaders are expected to meet in the coming months.
Trump said the discussion covered trade and the war in Ukraine, described Modi as a “powerful and respected leader,” and claimed India had agreed to stop buying Russian oil and instead increase purchases of energy and other goods from the US and “potentially, Venezuela.” There was no official confirmation from the Indian side.
According to Trump, the understanding would also see India eliminate tariffs and non‑tariff barriers on American goods and substantially ramp up purchases of US energy, technology, agricultural products and coal — potentially exceeding $500 billion.
He posted images related to India, including India Gate and a magazine cover featuring him with Modi, underscoring their personal rapport.
There was no immediate statement from the Ministry of External Affairs, and it remained unclear whether Trump’s assertions reflected a finalized agreement or ongoing negotiations. India and the US have been in talks to ease trade frictions and expand bilateral commerce, with tariffs and market access central to those discussions.
Domestically, Congress general secretary Jairam Ramesh questioned the way details emerged, noting the information came from US officials rather than the Indian government and calling it a pattern in which India learns of its government’s actions from President Trump or his appointees.
