U.S. President Donald Trump on Monday announced a major bilateral trade agreement with India, claiming immediate tariff reductions, elimination of Indian barriers on U.S. exports, massive American purchases by New Delhi, and a commitment from India to halt Russian oil imports to aid peace efforts in Ukraine.
Hours later, Indian Prime Minister Narendra Modi confirmed a phone conversation with Trump and expressed delight over the reduced U.S. tariffs on Indian products, thanking the president on behalf of 1.4 billion Indians while voicing strong support for Trump’s global peace initiatives.
In a detailed post on Truth Social following the call, Trump described the deal as a personal triumph built on his friendship with Modi.
“It was an Honor to speak with Prime Minister Modi, of India, this morning,” Trump wrote. “He is one of my greatest friends and, a Powerful and Respected Leader of his Country.”
Trump outlined key provisions taking effect immediately:
– Reduction of U.S. reciprocal tariffs on Indian goods from 25% to 18%.
– India’s elimination of tariffs and non-tariff barriers on American products.
– India’s pledge to purchase over $500 billion in U.S. goods across energy, technology, agriculture, coal, and other sectors under a “BUY AMERICAN” initiative.
– India’s agreement to “stop buying Russian Oil” and shift purchases to the United States and potentially Venezuela, which Trump said would help “END THE WAR in Ukraine.”
“Our amazing relationship with India will be even stronger going forward,” Trump added. “Prime Minister Modi and I are two people that GET THINGS DONE.”
In a post on X (formerly Twitter) on Monday evening, Modi corroborated the call and welcomed the tariff cut but did not reference the broader commitments claimed by Trump.
“Wonderful to speak with my dear friend President Trump today,” Modi wrote. “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 emphasized bilateral cooperation: “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, “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace,” and expressed eagerness to “take our partnership to unprecedented heights.”
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.
When two large economies and the…
— Narendra Modi (@narendramodi) February 2, 2026
Modi’s statement did not mention eliminating Indian tariffs on U.S. goods, specific purchase commitments, or any shift away from Russian oil imports—a key U.S. concern given India’s surge in discounted Russian crude purchases since 2022.
The White House and Indian government have not yet released a joint readout or formal agreement text. Officials from both sides are expected to provide further clarification soon.
