Trump Says India Trade Deal Done, Cuts Reciprocal Tariffs From 25% To 18%

By Deepak Arora

WASHINGTON, Feb 2: In a post in Truth Social, US President Donald Trump has announced that India and the US have "agreed to a Trade Deal" under which the US will cut reciprocal tariff from 25 per cent to 18 per cent.

His post was followed by one from Prime Minister Narendra Modi who conveyed his "Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement".

The two leaders spoke this morning on telephone.

Trump's post read: "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%."

India, he declared, will "likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO".

Trump also said that India has "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!"

The US President said "The Prime Minister also committed to ‘BUY AMERICAN,’ at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward."

The announcement read: "Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most."

The announcements came on the day foreign minister S Jaishankar left for the US to attend a ministerial meet on critical minerals.

Washington had slapped 25% import tax on Indian goods as part of its Liberation Day tariffs last year, and an additional 25% for New Delhi’s import of Russian oil, making India among the highest tariffed countries.

The US India Strategic Partnership Forum (USISPF) in a statement said the reduction of India's reciprocal tariff to 18 per cent marks an important and positive first step.

While the agreement's specifics are pending, the announcement signals strong political will on both sides to move toward a comprehensive US-India bilateral trade agreement that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors.

Here is the full statement:

“It was an Honor to speak with Prime Minister Modi, of India, this morning. 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! 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. The Prime Minister also committed to ‘BUY AMERICAN,’ at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many 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. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP”.

Modi Thanks Trump For Reducing Tariffs

By Deepak Arora

NEW DELHI, Feb 2: Prime Minister Narendra Modi today thanked US President Donald Trump - "on behalf of the 1.4 billion people of India" - for reducing tariffs on Indian goods from 25 per cent to 18 per cent.

"Delighted that Made in India products will now have a reduced tariff of 18 per cent," Modi said in a post on X, minutes after Trump announced the tariff cut on 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 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," the prime minister said.

"When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace," Modi said. "I look forward to working closely with him to take our partnership to unprecedented heights."

New era of India-US relations: Ambassador Sergio Gor

By Deepak Arora

NEW DELHI, Feb 2: US Ambassador Sergio Gor has described the recently announced India-US trade deal, cutting India’s tariffs from 50% to 18%, as marking a “new era of India-US relations.” He added that “both US President Donald Trump and Prime Minister Narendra Modi are great leaders.”

“All the credit goes to President Trump and PM Modi. The two leaders have a great personal relationship, which has carried the deal forward. The number that will be finalised will be 18%," Gor said.

Calling the announcement an, “incredible news", Gor said this is a “new era" and asserted that the US is open to business.