WASHINGTON: The United States President Donald Trump announced what he described as a major “trade deal’’ with India following a communication with Prime Minister Narendra Modi.
In this sense, Donald Trump said on Truth Social, the two leaders discussed a wide range of issues, including bilateral trade and the ongoing Russia-Ukraine war. As per the Trump, the talks resulted in an understanding that would significantly reshape economic ties between the world’s two largest democracies.
So far, Trump’s claim that India had agreed to stop purchasing Russian oil and instead source energy from the United States and, potentially, Venezuela.
— Rapid Response 47 (@RapidResponse47) February 2, 2026
Donald Trump described Modi as “a powerful and respected leader,” Trump said India had committed to purchasing more than $500 billion worth of American energy, technology, agricultural products, coal, and other goods.
He further suggested that the agreement could contribute to ending the war between Russia and Ukraine, though no details were provided on how this outcome would be achieved.
Meanwhile, the statement immediately drew international attention, as India has remained one of the largest buyers of discounted Russian crude amid Western sanctions on Moscow.
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
Moreover, Trump also mentioned that, as a gesture of goodwill, the US would reduce its reciprocal tariff rate on Indian goods from 25% to 18%. In return, he claimed India would lower tariffs on American products to zero, opening its market more fully to US exports.
Furthermore, Prime Minister Modi acknowledged the discussion in a post on social media platform X, welcoming the reduction in tariffs and praising the strengthening partnership between the two countries.
Modi said cooperation between large economies benefits their people and creates new opportunities for mutual growth. The announcement comes against the backdrop of prolonged and often difficult trade negotiations between Washington and New Delhi.
Trump had imposed steep tariffs on Indian goods during his previous term, including additional levies linked to India’s continued energy trade with Russia.
