United States President Donald Trump on Monday, 2 February 2026, announced that after speaking with Indian Prime Minister Narendra Modi, the two nations have finally agreed on a long-awaited trade deal.
In a Truth Social post, Trump said that the United States will reduce the ‘reciprocal’ tariffs imposed on India to 18% on all imports, compared to their current 25% levels as part of the newly agreed trade deal.
“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%,” said Trump.
Trump's announcement was released via his social media post on Truth Social.
Indian Prime Minister Narendra Modi thanked his ‘dear friend’, President Donald Trump, for reducing the reciprocal tariffs to 18% compared to their original 25% levels.
“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,” said Prime Minister Narendra Modi in his post on 2 February 2026.
