India-US talks highlights: Tariffs on India lowered from 50% to 18% as Trump announces deal

After around year-long negotiations and several talks, India and the United States struck a trade deal on Monday, February 2.

-US President Donald Trump on Monday announced a new trade deal with India featuring lower reciprocal tariffs and expanded market access, while claiming that New Delhi would halt purchases of Russian oil and sharply increase imports of American goods.

-In a social media post, PM Modi said he had a “wonderful” conversation with Trump and thanked him for lowering tariffs on Made in India products to 18 per cent.

-However, the Indian statement did not mention any commitment on stopping Russian oil purchases or reducing all tariffs and non-tariff barriers to zero, as claimed by Trump.

-Trump claimed India would reduce its tariffs and non-tariff barriers against US goods to zero and commit to buying more than $500 billion worth of US energy, technology, agricultural products, coal and other goods.

-While India has confirmed the tariff reduction, it has not publicly confirmed Trump’s claims regarding Russian oil purchases, zero tariffs and non-tariff barriers, or the $500 billion buying commitment.

India-US talks live updates: Finance minister Nirmala Sitharaman hailed the India-US trade deal and said that it was a good news for ‘Made in India’ products.

“Good news for #MadeInIndia products. They will now face reduced tariff of 18%. Thanking the leadership of PM @narendramodi and @POTUS for this development,” she wrote on X.

“People of our two large democracies stand to benefit,” she added.

India-US talks live updates: Commerce minister Piyush Goyal said that the newly-agreed trade deal between India and the United States unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world. “It will help India get technology from the US,” he said.

"It is not just a trade deal - it is a historic turning point that will reshape India–U.S. relations and accelerate our journey towards Viksit Bharat 2047," he added.

“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 on X.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he added.

Modi’s post didn’t have any mention of a trade deal but Union minister Ashwini Vaishnaw confirmed on X that India and the US reached a trade deal, which he called a “win win”.

Speaking to HT, Under Secretary of State Jacob Helberg welcomed the trade agreement.

“We’re excited that the successful conclusion of the deal actually creates and adds a lot of positive momentum to actually deepening our industrial collaboration,” Helberg told HT ahead of a crucial critical minerals ministerial dialogue in Washington DC, which external affairs minister S Jaishankar is expected to attend.

“We think that now that the trade deal is finalised, it will actually help create a lot of momentum and free up a lot of political oxygen that can be channeled towards specific, tactical projects,” Helberg added.

India-US talks live updates: Maharashtra chief minister Devendra Fadnavis on Tuesday lauded the India-US trade deal, calling the relationship between the two countries ‘a new chapter of friendship’.

“The historic trade agreement between India and the United States is truly a victory of the friendship between Hon. Prime Minister Narendra Modi ji and the President of the United States, Donald Trump. This is also an extremely important moment for global trade,” Fadnavis wrote on X.

The minister added that India would now receive preferential tariff rates from the United States among the world's major exporting economies.

“This agreement will open the doors to many new and exciting opportunities for Indian businesses and will prove beneficial for both countries,” Fadnavis further wrote.

India-US talks live updates: Union defence minister Rajnath Singh on Tuesday hailed the recent India-US trade deal which slashed down reciprocal tariffs on India to 18 per cent, calling it a ‘landmark moment’.

“I congratulate Prime Minister @narendramodi and US President @realDonaldTrump on reaching this decisive agreement, which will significantly strengthen our strategic partnership and deliver tangible benefits to both the countries and their people. With this agreement, India–US economic ties are set to reach new heights,” he wrote on X.

India-US talks live updates: Congress MP Jairam Ramesh on Monday took a jibe at PM Modi and the ruling Bharatiya Janata Party, as he criticized the India-US trade deal and said that it cannot be the ‘father of all deals’.

The comment came days after PM Modi coined the term ‘mother of all deals’ for the recent India-EU free trade agreement (FTA) between India, European Commission and European Council.

Stressing on Trump's announcement of the halt of Operation Sindoor, updates on India’s oil purchases from Russia and Venezuela and now the deal, Ramesh said that Donald Trump had a leverage over PM Modi and that Modi has ‘capitulated finally’.

India-US talks live updates: BJP's national president Nitin Nabin on Monday praised the recent India-US trade deal, calling it ‘highly commendable’.

Appreciating PM Modi for his ‘able leadership’, he said that the deepening ties between the two countries would have a ‘very positive and far-reaching impact’.

“This decision will serve as a medium to give new momentum to the progress of the Indian economy. It will also infuse fresh energy into the Atmanirbhar Bharat and Make in India campaigns,” he wrote on X.

India-US talks live updates: Union minister of Railways, Information & Broadcasting and Electronics and IT Ashwini Vaishnaw on Monday called the India-US trade deal a ‘win-win’.

Noting that India and US have complimentary strengths and that both can co-create technologies, Vaishnaw said that the deal would lead to a brighter future for both countries.

India-US talks live updates: After the announcement of the India-US trade deal, BJP leaders praised the move while Congress took a swipe at the Modi government.

India-US talks live updates: While India was initially hit with a 25 per cent tariff from the US in 2025, it was later increased to 50 per cent due to India's continued purchase of Russian oil.

The tariff rates further shot up in January 2026, when US President Donald Trump announced an additional 25 per cent tariff on any country doing business with Iran, pulling up the cumulative tariff rate on Indian goods to a whopping 75 per cent.

With the fresh trade deal now in place between Washington and New Delhi, the reciprocal tariff rate stands at a firm 18 percent.

India-US talks live updates: Apart from the slash in tariff rates, another part of the fresh India-US trade agreement was that all nations would stop buying oil from Russia to bring peace.

“As you saw in the Truth of the President wrote, part of the agreement is that all nations around the world stop buying oil from Russia in order to bring peace. I know the Prime Minister deeply cares about bringing peace in that conflict, as does President Trump. So the number as it gets finalised will be 18 per cent,” US ambassador to India Sergio Gor said

India-US talks live updates: US ambassador to India Sergio Gor on Monday attributed the fresh India-US trade deal to President Donald Trump and Indian Prime Minister Narendra Modi.

“All credit goes to President Trump and PM Modi. Since I arrived in India about a month ago, I have said that the two leaders have a great personal relationship and that is something that carried this deal forward,” Gor told CNN News 18.

India-US talks live updates: After slashing down tariffs on India to 18 per cent, US President Donald Trump referred to himself and Indian PM Modi as ‘two people that GET THINGS DONE, something that cannot be said for most’.

Minutes after the announcement, PM Modi posted on X where he said that when two large economies and democracies work together, it benefits people.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” PM Modi wrote.

India-US talks live updates: US President Trump on his Truth Social post claimed that PM Modi committed to ‘BUY AMERICAN’ at a much higher level in addition to over $500 billion dollars of US energy.

“The Prime Minister also committed to ‘BUY AMERICAN,’ at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products,” Trump wrote.

India-US talks live updates: On his recent Truth Social post, Donald Trump claimed PM Modi told him that India would move forward to reduce its tariff and non-tariff barriers against the US to ‘zero’.

“They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO”, he wrote.

India-US talks live updates: According to United States President Donald Trump's Truth Social post, the primary reason that he listed for nodding to the recent deal was that PM Modi had ‘agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela’, which he claimed would help ‘end the war in Ukraine’.

Another reason that Trump listed was the “friendship and respect for Prime Minister Modi”.

Following the announcement from Donald Trump, US ambassador to India Sergio Gor said the relationship between both countries has “limitless potential.”

“As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!” Gor said in a post on the social media platform X.

US President Donald Trump on Monday announced a new trade deal with India featuring lower reciprocal tariffs and expanded market access, while claiming that New Delhi would halt purchases of Russian oil and sharply increase imports of American goods. India has now confirmed the tariff reduction portion of the agreement, with Prime Minister Narendra Modi welcoming the move in a public statement after the call. Read about the details of the deal here.

US President Donald Trump on Monday said he had agreed to a trade deal with India and that New Delhi also agreed to stop buying Russian oil and to buy more from the US and, potentially, Venezuela.

Below is the timeline of events since Trump imposed a 50% tariff on Indian goods being shipped to the US.

2025

April 2, 2025 — The US imposed a 26% "reciprocal tariff" on several Indian imports as part of its global "liberation day" tariff actions.

April 10 - Trump paused the tariffs for 90 days and maintained a 10% duty on all U.S. imports.

July 31 - Trump announced a 25% tariff on all Indian goods and said it would levy a penalty if India continued to buy Russian oil.

August 7 - Trump boosted tariffs to 50% on Indian goods being shipped to the U.S., citing the Asian country's continued purchase of Russian oil. The tariff on Indian goods was the highest among US trade partners.

(Reuters)

Prime Minister Narendra Modi welcomed the trade deal between India and the US.

“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 on X.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace,” he added

“I look forward to working closely with him to take our partnership to unprecedented heights,” the post read.

PM Modi has thanked Donald Trump for announcing India-US trade deal, reducing tariffs in a post on X.

White House says Russian oil tariffs will be dropped as part of India's agreement to cease Russian oil purchases. Final tariff will be 18%