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Trump Announces Trade Deal with India, Cuts Tariffs to 18% After Modi Call

US President Donald Trump has claimed he and Prime Minister Narendra Modi agreed to a new trade deal, reducing a key US tariff on India from 25% to 18%. In a social media post, Trump stated the agreement includes India stopping purchases of Russian oil and buying more American energy and goods. He praised Modi as a "greatest friend" and a powerful leader, emphasizing their ability to "get things done." The Indian government has not yet officially confirmed or detailed the purported agreement.

Key Points: Trump Claims India Trade Deal, Tariff Cut After Modi Call

  • Trump announces US-India trade deal
  • Reciprocal tariff cut from 25% to 18%
  • Claims Modi agreed to stop buying Russian oil
  • Indian government yet to confirm details
3 min read

President Trump claims trade deal with India, says reciprocal tariff down to 18 per cent

Donald Trump announces a US-India trade deal, slashing reciprocal tariffs from 25% to 18% and claims PM Modi agreed to stop buying Russian oil.

"Prime Minister Modi and I are two people that GET THINGS DONE - Donald Trump"

New Delhi, February 2

US President Donald Trump on Monday said he and Prime Minister Narendra Modi "have 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%.

In a post on his social media handle Truth Social, Trump referred to his conversation with Prime Minister Narendra Modi earlier in the day.

Trump said PM Modi was one of his greatest friends and a powerful and respected leader of his country.

Trump also said PM Modi and he are two people that get things done.

He claimed that the Prime Minister had agreed to "stop buying Russian Oil", and to buy much more from the United States.

The Indian government has for far not made any announcement about the trade deal with the United States. Details from the Government of India were still awaited at the time of writing the report.

"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," Trump said in his post.

"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%," he added.

Trump claimed India will reduce tariffs and non-tariff Barriers against the United States.

"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!" Trump added.

US Ambassador to India Sergio Gor earlier said that President Trump had spoken with Prime Minister Modi on Monday,.

"President Trump just spoke with Prime Minister Modi. STAY TUNED...," Sergio Gor said in a post on X.

PM Modi had spoken with President Trump in December last year and the two leaders had agreed to work closely to address shared challenges and advance common interests.

- ANI

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Reader Comments

P
Priya S
"Agreed to stop buying Russian Oil"? That's a massive strategic shift if accurate. Our energy security has relied on affordable Russian crude. Buying more from the US and Venezuela will be much more expensive. Hope our negotiators got something very substantial in return.
R
Rohit P
Trump's statement reads like a campaign speech. "Two people that get things done"? Please. Our government's silence is telling. We should not make foreign policy decisions based on the whims of a foreign leader, especially one known for volatility. Let's see the fine print.
S
Sarah B
Interesting development. A reduction from 25% to 18% is significant. As someone involved in the tech sector, easier access to US markets could be a game-changer for Indian startups and IT services. But the "BUY AMERICAN" commitment worries me for our manufacturing.
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Vikram M
The government needs to clarify this immediately. Trump is announcing major policy shifts on our behalf. What about our strategic autonomy? We buy oil from where it's in our national interest, not to help someone's election campaign or to "end a war". 🇮🇳
K
Karthik V
Good move if it brings down prices of American tech and agricultural products here. But reducing our tariffs to "ZERO" as he claims? That sounds extreme and could hurt our domestic industries. Hope our side negotiated proper safeguards for MSMEs and farmers.

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