• India and US reached a trade deal lowering tariffs from 25% to 18%.
• India committed to stop buying Russian oil and instead purchase from the US and Venezuela.
• PM Modi expressed gratitude, highlighting partnership benefits for both nations.
• Trump announced the deal following a conversation with PM Modi.
• The new tariff rates also aim to enhance economic cooperation between the two democracies.

On February 2, 2026, US President Donald Trump announced a significant trade deal with India, which will see tariffs on Indian exports lowered from 25% to 18%. Trump confirmed this arrangement during a social media post following a conversation with Indian Prime Minister Narendra Modi, stating, “Out of friendship and respect for Prime Minister Modi... we agreed to a Trade Deal whereby the United States will charge a reduced Reciprocal Tariff” effective immediately, and discussed the importance of ceasing Russian oil purchases to potentially aid in ending the ongoing war in Ukraine, according to Indiatimes and Reuters.

Under the new terms, India has agreed to halt its purchases of Russian oil and instead increase imports from the United States and possibly Venezuela. Trump emphasized that this trade deal would enable India to buy more than $500 billion in various American products including energy, technology, agriculture, and coal, helping to reinforce economic ties between the two nations, according to BBC and South China Morning Post.

Prime Minister Modi celebrated the announcement, expressing on X (formerly Twitter) his satisfaction with the new tariff rate, which he described as a “wonderful announcement” for the 1.4 billion people of India. He reiterated how the partnership benefits both nations and remarked on Trump’s leadership being vital for global peace and prosperity, as noted by Indiatimes and Indiatimes.

The announcement signifies a pivotal advancement in the US-India trade relationship, further demonstrated by the removal of a 25% penal tariff related to India's procurement of Russian oil, which had been imposed in response to India's continued oil purchases amid the conflict in Ukraine. This has been officially confirmed by both US and Indian sources, highlighting the deal as advantageous for both economies, according to Reuters and Indiatimes.