After a year of fruitless talks, threats and sanctions, the United States and India announced they have reached a trade agreement, though without specifying the exact terms. Donald Trump delivered the news on Monday, February 2, on his social network, Truth Social. The US president said he had lifted the tariffs imposed in 2025 to punish India for its protectionist policies and its purchases of Russian oil. Tariffs on Indian products will be reduced from 50% to 18%, effective immediately.
The Indian prime minister “agreed to stop buying Russian oil, and to buy much more from the US and, potentially, Venezuela,” said the US president after a phone conversation with Narendra Modi. He praised the “amazing relationship [the US has] with India,” which he said “will be even stronger going forward.” According to Trump, New Delhi committed to “reduce their tariffs and non-tariff barriers against the United States to zero” and agreed to purchase $500 billion worth of energy, agricultural and coal products.
Modi has not commented on the details of the negotiations or on the cessation of Russian crude imports, but he posted a message on X to thank his counterpart. “Wonderful to speak with my dear friend President Trump today. Delighted 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.” The Indian prime minister, who had been sparing with compliments in recent months, also praised the 79-year-old Republican. “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace,” he wrote.
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