The agreement also includes rollback of the additional 25% US tariff on India’s Russian oil purchases, boosting bilateral trade and energy cooperation
Shortly after US President Donald Trump announced that the United States and India had agreed to a bilateral trade deal to lower reciprocal tariffs, Prime Minister Narendra Modi on Monday welcomed the reduction of tariffs to 18% on Made in India products.
The deal also includes the rollback of an additional 25% tariff that Trump had imposed on India over its purchases of Russian oil.
In a post on X, PM Modi thanked Trump for the decision, calling it a boost for bilateral ties.
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
“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,” he said.
PM Modi said cooperation between India and the United States, as the world’s largest democracies and major economies, would bring broad benefits.
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he said.
“President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” PM Modi added.
Earlier, President Donald Trump said that following a call with PM Modi, the two sides had agreed on a trade deal, adding that India had also committed to stopping purchases of Russian oil and instead buying more from the United States and potentially Venezuela.
“It was an honour to speak with Prime Minister Modi. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” President Trump posted on Truth Social.
“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” he added.
Trump said PM Modi also committed to buy more than $500 billion dollars worth of US energy, technology, agricultural and other products.
“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most…,” he said.
According to AFP, citing a White House official, additional 25% tariff imposed by President Trump on India over its purchases of Russian oil would be withdrawn following New Delhi’s agreement to stop buying the fuel.
Trump has been pressing India for months to end its reliance on Russian oil as part of his push for a ceasefire in Ukraine, and last year imposed extra tariffs on New Delhi over the issue.
The United States is also effectively overseeing Venezuelan oil exports after toppling the South American country’s leader, Nicolás Maduro, in a military operation in January.
During his “Liberation Day” tariff measures last year, Trump imposed 25% reciprocal levies on India, the world’s most populous nation, and later added a further 25% penalty linked specifically to India’s Russian oil imports.
PM Modi was among the first foreign leaders to visit the White House after Trump’s inauguration for a second term in January 2025, but trade negotiations between the two countries have remained challenging over the past year.
Trump had said in October that PM Modi had promised to stop buying Russian oil, though no agreement was reached at the time.
With inputs from agencies
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