New Delhi: US President Donald Trump said the United States and India had agreed to a new trade deal following a phone conversation with Prime Minister Narendra Modi, a move he said would reset strained economic ties between the two countries.
Announcing the development on his social media platform Truth Social, Trump said Washington would immediately lower its reciprocal tariff on Indian goods from 25 percent to 18 percent. In return, India would move to reduce its tariffs and non-tariff barriers on US products to zero, opening its market wider to American exports.
Trump said the two leaders also discussed global issues, including the war in Ukraine. He claimed Modi had agreed to stop buying Russian oil and instead increase energy purchases from the United States and, potentially, Venezuela. Trump argued the shift would help cut off funding for the conflict in Ukraine, which he said was costing thousands of lives every week.
“It was an honour to speak with Prime Minister Modi,” Trump wrote, calling him “one of my greatest friends” and a “powerful and respected leader.” He added that the trade agreement was reached “out of friendship and respect” and at Modi’s request, and would take effect immediately.
Prime Minister Modi later confirmed the agreement in a post on X, welcoming the reduced tariff on Indian exports. He said the move would benefit Indian businesses and workers, and described the deal as a step that would unlock immense opportunities for cooperation between the world’s two largest democracies. Modi also praised Trump’s leadership and said India supported efforts aimed at global peace and stability.
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
US Ambassador to India Sergio Gor also welcomed the announcement, saying Trump regarded Modi as a close friend and that the relationship between the two countries had limitless potential. The agreement comes after months of trade tensions, during which the US had imposed steep tariffs on Indian exports, partly linked to India’s purchases of Russian crude.
Trump has also praised New Delhi’s iconic India Gate while unveiling plans to build a grand triumphal arch in Washington, drawing inspiration from historic monuments worldwide.
In a post on Truth Social, Trump described India Gate as ‘India’s beautiful Triumphal Arch,’ sharing a photograph of the landmark and adding that a similar monument in the United States would be ‘the greatest of them all.’
The 42-metre-high India Gate, often compared to Paris’s Arc de Triomphe, honours more than 70,000 Indian soldiers who died while serving in the British Army during World War I and the Third Anglo-Afghan War.
Speaking to reporters aboard Air Force One over the weekend, Trump said Washington has long lacked such a monument despite the idea existing for centuries. “We’re the only major city that doesn’t have one,” he said.
Trump added that his administration is setting up a committee to plan the project, stressing that the proposed arch would be the largest and most beautiful in the world.
