US-India trade deal reached: tariffs cut to 18%, Trump confirms

Modi thanked Trump for the tariff cut, but did not explicitly confirm a trade deal or commitments on Russian oil. The agreement strengthens economic ties between the US and India and helps India remain competitive in the US market. | Photo credit: KEVIN LAMARQUE/Reuters

“They will also take steps to reduce their tariffs and non-tariff barriers against the United States to zero,” Trump posted on his social media platform Truth Social on Monday after a telephone conversation with Modi.

Russian oil promise

The US president further said that Modi had agreed to stop buying Russian oil and buy more from the US and possibly Venezuela.

“The Prime Minister has also committed to ‘BUY AMERICAN’ at a much higher level, in addition to over $500 BILLION DOLLARS in American energy, technology, agriculture, coal and many other products,” Trump added.

Modi’s X response

The Indian Prime Minister responded to Trump’s announcement on social media platform ‘X’ and thanked him for agreeing to reduce tariffs on Indian goods to 18 percent.

“Great to speak with my dear friend President Trump today. I am happy that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said.

However, the Prime Minister made no mention of a trade deal in his post. Nor did he confirm that India had agreed to halt Russian oil purchases and reduce tariffs and non-tariff barriers on US goods to zero.

Washington agreed to drop the punitive 25 percent tariff tied to purchases of Russian oil based on India’s commitment to halt all purchases, US government officials reportedly said.

“We talked 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 possibly Venezuela. This will help end the war in Ukraine that is happening right now, with thousands of people dying every week!” Trump said in his message.

Oil buying challenge

India has so far shied away from cutting Russian oil purchases to zero, although crude oil purchases from Moscow have fallen significantly since December 2025. This followed the imposition of US sanctions on Russian oil companies Rosneft and Lukoil.

Because Moscow is a long-term economic and strategic partner, it may be difficult for Delhi to officially halt trade with the country, including oil purchases.

Competitive necessity

A deal with the US is essential for India to remain competitive in the US market. India’s competitors such as Vietnam, Bangladesh and Indonesia have already signed deals with the US and are facing tariffs of 19 to 20 percent.

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Published on February 2, 2026