US–India commerce deal reached: Tariffs slashed to 18%, Trump confirms – Company Technique & Outlook

Modi thanked Trump for the tariff discount however didn’t explicitly verify a commerce deal or commitments on Russian oil. The settlement strengthens US–India financial ties and helps India stay aggressive within the American market.
| Picture Credit score:
KEVIN LAMARQUE/Reuters

US President Donald Trump has mentioned that Washington is reducing its reciprocal tariffs on India to 18 per cent from 25 per cent following a commerce deal struck between the 2 nations.

“They may likewise transfer ahead to cut back their tariffs and non tariff limitations towards america, to zero,” Trump posted on his social media platform Reality Social on Monday following a telephonic dialog with Modi.

Russian oil pledge

The US President additional mentioned that Modi had agreed to cease shopping for Russian oil and to purchase far more from the US and, probably, Venezuela.

“The Prime Minister additionally dedicated to ‘BUY AMERICAN,’ at a a lot larger degree, along with over $500 BILLION DOLLARS of US power, expertise, agricultural, coal, and plenty of different merchandise,” Trump added.

Modi’s X response

The Indian Prime Minister responded to Trump’s announcement on the social media platform `X’, thanking him for agreeing to cut back tariffs on Indian items to 18 per cent.

“Fantastic to talk with my expensive good friend President Trump in the present day. Delighted that Made in India merchandise will now have a lowered tariff of 18%. Large because of President Trump on behalf of the 1.4 billion folks of India for this excellent announcement,” Modi mentioned.

The PM, nevertheless, didn’t point out a commerce deal in his put up. Nor did he verify that India had agreed to cease Russian oil buy and produce down tariffs and non-tariff limitations on American items to zero.

Washington agreed to drop the punitive tariff of 25 per cent tied to buy of Russian oil on India’s dedication that it might cease all purchases, US authorities officers reportedly mentioned.

“We spoke about many issues, together with Commerce, and ending the Warfare with Russia and Ukraine. He agreed to cease shopping for Russian Oil, and to purchase far more from america and, probably, Venezuela. This may assist finish the struggle in Ukraine, which is happening proper now, with 1000’s of individuals dying every week!,” Trump acknowledged in his put up.

Oil buy problem

India had to this point shied away from committing to decreasing Russian oil purchases to zero, though its crude purchases from Moscow since December 2025 have declined considerably. This adopted the imposition of US sanctions on Russian oil firms Rosneft and Lukoil.

Since Moscow is a long-term financial and strategic companion, it could be troublesome for Delhi to formally halt commerce with the nation, together with oil purchases.

Aggressive necessity

A take care of the US is important for India to remain aggressive within the American market. India’s rivals, akin to Vietnam, Bangladesh and Indonesia, have already negotiated pacts with the US and face tariffs of 19-20 per cent.

Extra Like This

Printed on February 2, 2026