India-US trade deal: US President Donald Trump has taken a big decision after talking to Prime Minister Narendra Modi on phone on February 2, 2026. He has announced to reduce the additional tariff (import duty) imposed on goods coming from India.
Donald Trump described his phone conversation with Prime Minister Narendra Modi as a matter of great honor, calling Modi his very good friend and a powerful and respected leader of India. Donald Trump said that earlier an additional tariff of 25% was imposed on Indian goods, but now it will be reduced to 18%. This exemption has come into effect immediately.
India will not buy Russian oil- Trump
The two leaders discussed a number of important issues, such as trade and ways to end the Russia-Ukraine war. Trump claimed that PM Modi agreed that India will no longer buy oil from Russia. Instead, India will buy more oil from the US and possibly also from Venezuela. Trump believes that this will help stop the ongoing war in Ukraine, because Russia will get less money and thousands of people are dying there every week.
After Trump’s post, PM Modi also posted on X. However, he did not write anything about not buying oil from Russia. Donald Trump has made such claims many times before. PM Modi wrote, “It was great to talk to my dear friend President Trump today. It is a great pleasure to know that the tariff on ‘Made in India’ products will now be reduced to 18%. Heartfelt thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
India will buy goods worth 500 billion dollars
According to Trump, India also promised to move towards reducing its tariff and non-tariff barriers against the US to 0%. Apart from this, India will buy goods worth more than $500 billion from America in energy, technology, agriculture, coal and many other products.
Trump said that America’s relationship with India will become even stronger. He described himself and Modi as two people who are adept at working, which cannot be said about most people.
This agreement is considered beneficial for both the countries, because it will increase trade, secure energy supply and can also promote global peace.