New Delhi, Feb 3, 2026 — US President Donald Trump said on Monday that Washington and New Delhi have reached a trade understanding that would reduce reciprocal tariffs on Indian goods from 50% to 18% after a phone call with Prime Minister Narendra Modi.
A US embassy spokesperson, Chris Elms, confirmed that a 25% penal tariff the United States had imposed on India over purchases of Russian crude has been removed. Trump said the talks covered trade and the war in Ukraine and described Modi as a “powerful and respected leader.” He also claimed India had agreed to stop buying Russian oil and to increase purchases of US energy and other goods, possibly including supplies from Venezuela; this point had no official confirmation from India.
Trump said the deal would also see India remove tariffs and non‑tariff barriers on American products and significantly boost purchases of US energy, technology, agricultural goods and coal, potentially pushing bilateral trade well above $500 billion. Images related to India, including India Gate and a magazine cover showing him with Modi, were posted by Trump after the call.
Prime Minister Modi welcomed the tariff reduction on social media, saying he was “delighted that Made in India products will now have a reduced tariff of 18 per cent” and thanking Trump “on behalf of the 1.4 billion people of India.” Modi said closer cooperation between the two democracies benefits their citizens and creates new opportunities, and he said he looked forward to elevating the India‑US partnership.
US Ambassador to India Sergio Gor, who first announced the leaders’ conversation, said the two are expected to meet in the coming months.
There was no immediate statement from India’s Ministry of External Affairs, and it remained unclear whether Trump’s assertions reflect a finalized agreement or ongoing negotiations. India and the US have been engaged in talks to resolve trade frictions and expand market access, with tariffs a central issue.
Domestically, Congress general secretary Jairam Ramesh criticised the way the details were revealed, noting the information came from US officials rather than India’s own government and saying it continues a pattern in which India learns of its leaders’ actions from foreign sources.
