President Donald Trump on Monday, February 2, announced to lower reciprocal tariffs on Indian goods from 25 per cent to 18 per cent<\/b>
\nPresident Donald Trump on Monday, February 2, announced to lower reciprocal tariffs on Indian goods from 25 per cent to 18 per cent, following a phone call with Prime Minister Narendra Modi.
In a post on his social media platform Truth Social, Trump said the decision was taken \u201cout of friendship and respect\u201d for PM Modi and would take effect immediately. He added that India had agreed to reduce its tariffs and non-tariff barriers against the US to zero.
\u201cOut 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 per cent to 18 per cent,\u201d Trump wrote, describing Modi as one of his \u201cgreatest friends\u201d and said both leaders were \u201ctwo people that get things done.\u201d
The US President further claimed that India had agreed to stop purchasing Russian oil and would instead buy energy from the United States and \u201cpotentially Venezuela,\u201d a move he said \u201cwould help end the war in Ukraine.\u201d
He also said India would purchase more than USD 500 billion worth of US energy, technology, agricultural and other products, and had committed to \u201cBuy American\u201d at a higher level.
Prime Minister Modi welcomed the announcement, thanking Trump for the tariff reduction. \u201cWonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent,\u201d Modi said in a post on X.
The announcement comes a day after India presented its Union Budget 2026.
India-US relations had strained after Washington imposed a 50 per cent tariff on Indian goods, including an additional levy linked to India\u2019s purchase of Russian oil.
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