New Delhi: US President Donald Trump Monday announced a US-India trade deal “effective immediately”, adding that he would reduce reciprocal tariffs from 25 percent to 18 percent, in a lengthy Truth Social post. India is yet to react.
This came soon after US Ambassador to India Sergio Gor wrote in a post on X that Trump had spoken to Modi, with a cryptic “stay tuned”.
Earlier in the day, the US President had posted a photograph of India Gate on Truth Social, with the message: “India’s beautiful triumphal arch, our will be greatest of all (sic).”
In his latest post, Trump wrote that he spoke to Modi the same morning, referring to him as “one of my greatest friends, and a powerful and respected leader of his country”.
“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!” he further wrote.
The post further said: “Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO.
Trump wrote that Modi had 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”.
He further said that “Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most”.
Trump’s announcement comes at a time after almost a year of trade negotiations. The two sides were close to a deal in July last year, which fell through.
On Monday, External Affairs Minister S. Jaishankar left for the US, where he is set to hold a bilateral meeting with his American counterpart Marco Rubio and meet other senior officials on Tuesday and Wednesday. He will also attend the critical minerals ministerial convened by the Secretary of State.
President Trump just spoke with Prime Minister Modi. STAY TUNED… pic.twitter.com/IFcxrJj04m
— Ambassador Sergio Gor (@USAmbIndia) February 2, 2026
PM Modi had spoken with President Trump in December last year and the two had agreed to work closely to address challenges.
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