Trump Announces Major US-India Trade Deal After Phone Call with Modi
US President Donald Trump announced a significant bilateral trade agreement with India on Monday, February 2, 2026, following a telephone conversation with Prime Minister Narendra Modi. The deal includes immediate tariff reductions and commitments to boost trade volumes, marking a thaw in relations strained by earlier tariff disputes and energy import concerns.
US Ambassador to India Sergio Gor first confirmed the call via a post on X (formerly Twitter), stating: “President Trump just spoke with Prime Minister Modi. STAY TUNED…”
Shortly afterward, Trump detailed the agreement in a post on Truth Social, describing it as a product of “friendship and respect” for Modi, whom he called one of his “greatest friends” and a “powerful and respected leader.” Trump highlighted discussions on trade, ending the Russia-Ukraine war, and other global issues.
Key elements of the announced deal include: The United States will immediately lower its reciprocal tariff on Indian goods from 25% to 18%. India has committed to reducing its tariffs and non-tariff barriers on US products to zero. Modi agreed to halt purchases of Russian oil and shift imports toward greater volumes from the United States and potentially Venezuela, a move Trump said would help end the war in Ukraine by reducing funding for Russia. India pledged to significantly increase “Buy American” purchases, committing to over $500 billion in US energy, technology, agricultural products, coal, and other goods.
Trump emphasized the personal rapport between the leaders, stating: “Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most.” He predicted the US-India relationship would grow even stronger as a result.
The call comes amid ongoing negotiations for a broader bilateral trade agreement, which had faced hurdles over tariffs, market access, and India’s continued imports of discounted Russian oil despite Western sanctions. Previous tensions included additional US tariffs linked to those purchases.
No immediate official readout was released from the Indian side, though the development aligns with recent high-level engagements, including External Affairs Minister S. Jaishankar’s visit to the US around the same time. Analysts view the announcement as a step toward deeper economic and strategic cooperation in the Indo-Pacific region.
