Modi thanked Trump for the tariff reduction, but did not explicitly confirm a trade deal or commitments to Russian oil. The agreement strengthens US-India economic ties and helps India remain competitive in the American market. | Photo credit: KEVIN LAMARQUE/Reuters
US President Donald Trump has said that Washington will reduce its counter tariffs on India from 25 percent to 18 percent following a trade deal between the two countries.
“They will also work to reduce their tariffs and non-tariff barriers to trade with the United States to zero,” Trump posted on his social media platform Truth Social on Monday after a phone conversation with Modi.
Russian oil promise
The US president further said Modi had agreed to stop buying Russian oil and buy much more from the US and possibly Venezuela.
“The Prime Minister has also committed to purchasing AMERICAN at a much higher level, in addition to over $500 BILLION of U.S. energy, technology, agriculture, 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’ and thanked him for agreeing to reduce tariffs on Indian goods to 18 percent.
It’s wonderful to speak with my dear friend, President Trump, today. I am pleased that products manufactured in India will now enjoy a reduced duty rate of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.
When two major economies and the…
— Narendra Modi (@narendramodi) February 2, 2026
“It is wonderful to speak to my dear friend President Trump today. I am pleased that products made in India will now be subject to a reduced duty rate of 18%. Thank you to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said.
However, the Prime Minister did not mention any trade deal in his post. He also did not confirm that India had agreed to stop buying Russian oil and reduce tariffs and non-tariff barriers on American goods to zero.
Washington reportedly agreed to drop the punitive 25 percent tariff tied to purchases of Russian oil provided India committed to halt all purchases, U.S. officials said.
“We talked about many things, including trade and ending the war with Russia and Ukraine. He agreed to stop buying Russian oil and buy a lot more from the United States and possibly Venezuela. This will help end the war in Ukraine that is going on right now, with thousands of people dying every week!” Trump stated in his post.
Challenge when buying oil
India had previously shied away from committing to reducing Russian oil purchases to zero, even though its crude purchases from Moscow have fallen significantly since December 2025. 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 could be difficult for Delhi to officially halt trade with the country, including oil purchases.
Competitive need
An agreement with the US is crucial for India to remain competitive in the American market. India’s competitors such as Vietnam, Bangladesh and Indonesia have already negotiated pacts with the USA and face tariffs of 19 to 20 percent.
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Published on February 2, 2026