India-US trade deal: Reciprocal tariffs down to 18%, Trump’s claim of 500 billion dollar deal | What we know so far | India News

India-US trade deal: US President Donald Trump announced on Monday that he and Prime Minister Narendra Modi “agreed on a Trade Agreement” between the US and India and that the US would reduce bilateral tariffs from 25 percent to 18 percent.

In his post on his social media account Truth Social, US President Trump mentioned his meeting with Prime Minister Modi earlier in the day. He said that Prime Minister Modi is one of his greatest friends and a strong and respected leader of his country.

Also Read: India gains edge over regional export rivals after beating China, Bangladesh as tariffs drop to 18%

Trump said in his post: “It was an honor to speak with Prime Minister Modi of India this morning. He is one of my greatest friends and a Strong and Respected Leader of his Country. We talked about many things, from trade to ending the war with Russia and Ukraine.”

Trump also said that PM Modi is two people who get things done. He claimed that the Prime Minister had agreed to “stop buying Russian Oil” and buy much more from the US. The Indian government has not made any statement about the trade agreement with the USA so far.

Trump also said that the new US-India trade deal will come into effect immediately and claimed that India will purchase over $500 billion worth of US goods.

Trump also claimed that India will reduce tariffs and non-tariff barriers to the US.

“He agreed to stop buying Russian Oil and buy much more from the United States and potentially Venezuela. This will help END the WAR currently going on in Ukraine where thousands of people are dying every week! Out of friendship and respect for Prime Minister Modi and at his request, we have agreed to a Trade Agreement between the United States and India, effective immediately, where the United States will reduce the Reciprocal Tariff from 25% to 18%.” added.

“Likewise, they will move forward to reduce Tariffs and Non-Tariff Barriers against the US to ZERO. The Prime Minister has also pledged to “BUY AMERICAN” on $500 BILLION in US Energy, Technology, Agriculture, Coal and many other products at a much higher level. Our great relationship with India will be even stronger going forward. Prime Minister Modi and I are two people who get their JOB DONE, something that cannot be said for most,” Trump added.

PM Modi’s reaction to India-US trade deal

Prime Minister Modi on Monday said it was great to talk to his “dear friend President Trump” today and expressed his happiness that Made in India products now have a discounted tariff of 18 percent.

In a post on

The Prime Minister said that two major economies and the world’s largest democracies working together benefits our people and opens up tremendous opportunities for mutually beneficial cooperation.

Oil purchase from Russia

The United States will also reduce the 25 percent tariff on oil purchases from Russia as part of an agreement to halt India’s purchases of crude oil from Russia, the White House said on Monday.

After President Trump said that a trade agreement had been reached between the two countries, a White House official told IANS news agency, “As part of India’s agreement to stop Russian oil purchases, Russia’s 25 percent tariff on oil will be reduced.”

Jaishankar’s visit to the USA

According to the official statement made by the Ministry of External Affairs, External Affairs Minister S. Jaishankar will visit the USA between February 2-4 to attend the Critical Minerals Ministerial Meeting organized by US Secretary of State Marco Rubio.

ANI reported that the Ministerial Meeting will focus on supply chain resilience, clean energy transitions and strategic cooperation in critical minerals.

During the visit, EAM will also hold meetings with senior officials of the US administration.

(with input from agencies)