U.S. President Donald Trump announced on February 2, 2026, that the United States and India have agreed to a trade deal following a conversation with Indian Prime Minister Narendra Modi.

In a post on Truth Social, President Trump said he spoke with Prime Minister Modi, referring to him as “one of my greatest friends and, a Powerful and Respected Leader of his Country.”

Citing friendship and respect for Prime Minister Modi and acting on his request, President Trump stated, “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%,” effective immediately.

President Trump added that India would also move forward to reduce its tariffs and non-tariff barriers against the United States to “ZERO.” He said Prime Minister Modi committed to “BUY AMERICAN,” at a significantly higher level, including purchases of more than $500 billion worth of U.S. energy, technology, agricultural products, coal, and other goods.

“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,” President Trump wrote. 

He added that their discussion covered several issues, including trade and efforts to end the war between Russia and Ukraine. According to the President, Prime Minister Modi “agreed” to stop buying Russian oil and to purchase more energy from the United States and potentially Venezuela.

“This will help END THE WAR in Ukraine,” President Trump said, referring to the ongoing conflict that continues to claim thousands of lives each week.

Prime Minister Modi, in his own post, said, “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 world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Prime Minister Modi added. “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace.”

The Prime Minister also said he looks forward to working closely with President Trump to take the U.S.-India partnership to “unprecedented heights.”

Indian Ambassador to the United States Vinay Kwatra described the development as a “big WIN” for a “consequential partnership” under the leadership of Prime Minister Narendra Modi and President Donald Trump.

“India and USA announce trade deal creating vast new opportunities for the two economies and the people of our two great nations. Today’s announcements herald an exciting new phase in our partnership,” Ambassador Kwatra added.

US Ambassador to India Sergio Gor said, “As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend.” He added that he was “thrilled” by the news of the trade deal, noting that the relationship between the United States and India has “LIMITLESS POTENTIAL.”

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