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US to bring down reciprocal tariff on Indian goods to 18%: US President

03 Feb 2026 Evaluate

In a major breakthrough for India’s exports, US President Donald Trump, after a phone conversation with Prime Minister Narendra Modi, has said that India and the US have agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent. Trump claimed India will move forward to reduce ‘tariffs and non-tariff barriers’ against the US to zero. There is no immediate reaction from India.

Trump said Modi 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 said ‘Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done something that cannot be said for most’.

Trump said Modi and he discussed ending the war between Russia and Ukraine. He added ‘Modi agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela’. He noted ‘This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week’.


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