Trump and Modi announce a major US-India trade deal featuring tariff cuts, increased energy purchases, and expanded exports, aimed at economic growth and strategic cooperation.
Saloni Kumari | Feb 3, 2026 |
Historic US-India Trade Deal: Trump and Modi Promise Zero Tariffs and Massive Purchases
A post has recently been shared from the official platform ‘X’ account of the White House, the official residence and principal workplace of the United States President, informing that the president of the US, Donald J. Trump, recently spoke with the Prime Minister of India, Narendra Modi, in the morning. There, they spoke about several things related to trade.
Trump said it was an honour to speak with Modi, whom he described as a powerful and respected leader and one of his greatest friends. President Trump has confirmed that Narendra Modi has agreed to stop buying oil from Russia and will buy much more from the United States, possibly from Venezuela. This action will help in ending the long-running war between Russia and Ukraine, in which thousands of people are losing their lives every week.
In return, India has agreed to reduce its tariffs and non-tariff barriers on American goods to zero. Meaning, now several US-manufactured goods will be able to enter India without any taxes on imports, which could boost American exports.
Considering the humble request of the respected Prime Minister Modi and the strong friendship between the two nations, the United States will lower its reciprocal tariff on Indian goods from 25% to 18% under the new agreement. This change is effective immediately, and it is meant to strengthen trade between the two countries.
Trump said that Modi also committed to “buy American” with large purchases of U.S. energy, technology, agricultural products, coal, and other goods, totalling as much as $500 billion. Both leaders said the deal will make the relationship between the United States and India even stronger. Trump described himself and Modi as two leaders who “get things done”.
“It was an Honor to speak with Prime Minister Modi, of India, this morning… 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” – President Donald J. Trump 🇺🇸 pic.twitter.com/RD7PZ8S16z
— The White House (@WhiteHouse) February 2, 2026
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