Modi thanked Trump for the tariff reduction but did not explicitly confirm a trade deal or commitments on Russian oil. The agreement strengthens US–India economic ties and helps India remain competitive in the American market.
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KEVIN LAMARQUE/Reuters
US President Donald Trump has said that Washington is lowering its reciprocal tariffs on India to 18 per cent from 25 per cent following a trade deal struck between the two countries.
“They will likewise move forward 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 following a telephonic conversation with Modi.
Russian oil pledge
The US President further said that Modi had agreed to stop buying Russian oil and to buy much more from the US and, potentially, Venezuela.
“The Prime Minister also committed to ‘BUY AMERICAN,’ at a much higher level, in addition to over $500 BILLION DOLLARS of US energy, technology, agricultural, coal, and many other products,” Trump added.
Modi’s X response
The Indian Prime Minister responded to Trump’s announcement on the social media platform `X’, thanking him for agreeing to reduce tariffs on Indian goods to 18 per cent.
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.
When two large economies and the…
— Narendra Modi (@narendramodi) February 2, 2026
“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,” Modi said.
The PM, however, did not mention a trade deal in his post. Nor did he confirm that India had agreed to stop Russian oil purchase and bring down tariffs and non-tariff barriers on American goods to zero.
Washington agreed to drop the punitive tariff of 25 per cent tied to purchase of Russian oil on India’s commitment that it would stop all purchases, US government officials reportedly said.
“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. This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week!,” Trump stated in his post.
Oil purchase challenge
India had so far shied away from committing to reducing Russian oil purchases to zero, although its crude purchases from Moscow since December 2025 have declined substantially. This followed the imposition of US sanctions on Russian oil companies Rosneft and Lukoil.
Since 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 stay competitive in the American market. India’s competitors, such as Vietnam, Bangladesh and Indonesia, have already negotiated pacts with the US and face tariffs of 19-20 per cent.
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Published on February 2, 2026
