Reuters. U.S. President Donald Trump on Monday (February 2) said he had agreed on a trade deal with India, and that India also agreed to stop buying Russian oil and buy more from the United States and potentially Venezuela.
“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%,” Trump said in a social media post following a call with Indian Prime Minister Narendra Modi.
Modi also committed to buy more than $500 billion dollars worth of U.S. energy, technology, agricultural and other products, Trump added.
Indian Prime Minister Narendra Modi thanked U.S. President Donald Trump for a trade deal between the two nations on Monday (February 2), moments after Trump unveiled a deal reducing reciprocal tariffs on India to 18%.
U.S. President Donald Trump on Monday said he had agreed on a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India lowering trade barriers, stopping its purchases of Russian oil and buying oil instead from the U.S. and potentially Venezuela.
Indian markets have been battered since the tariffs were levied by Washington, making it the worst-performing market among emerging nations in 2025, with record outflows of foreign investors.
