India, US agree to trade deal; Trump announces tariff cut after call with PM Modi

After a call with PM Modi, Trump says the US has struck a trade deal with India, lowered tariffs, and secured major energy purchases

PGurus Newsdesk

February 2, 2026

Trade, oil and Ukraine war discussed during Trump–Modi phone conversation

“He Is One of My Greatest Friends”: Trump Praises PM Modi, Announces Tariff Cut

India and the United States have reached a trade agreement, U.S. President Donald Trump announced on Monday after a telephonic conversation with Prime Minister Narendra Modi. Describing PM Modi as one of his “greatest friends,” Trump said he has decided to reduce tariffs on Indian goods from 25 per cent to 18 per cent.

In a post on Truth Social, Trump claimed that PM Modi has agreed India will stop purchasing Russian oil, an issue on which Western countries have repeatedly criticised New Delhi. He also said India would increase oil imports from the United States and potentially from Venezuela.

“It was an honour to speak with Prime Minister Modi… 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,” Trump said, adding that the move would help efforts to end the Ukraine conflict that has claimed thousands of lives.

Trump said the decision to lower tariffs to 18 per cent was taken out of his “respect and friendship” for the Indian Prime Minister. He further claimed that India has agreed to reduce tariffs and non-tariff barriers on U.S. goods to zero, asserting that the two leaders “get things done, something that cannot be said for most.”

US President Donald Trump announces tariff cuts and a major trade deal with India following talks with Prime Minister Narendra Modi

“The Prime Minister also committed to ‘BUY AMERICAN’ at a much higher level, including over $500 billion of U.S. energy, technology, agricultural products, coal and many other goods,” Trump said, adding that the India-US relationship would grow even stronger in the future.

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