February 2, 2026 — U.S. President Donald Trump announced a new trade deal with India that will see the U.S. lower reciprocal tariffs on goods from the country from 25 percent to 18 percent and potentially remove a separate 25 percent tariff related to India’s imports of Russian oil.
In a post on his social media site Truth Social, Trump said he spoke with India Prime Minister Narendra Modi on 2 February and struck a deal which will see India purchase USD 500 billion (EUR 424 billion) in U.S. energy, technology, agriculture, coal, and other products. In return, Trump said the reciprocal tariff lodged against India – which was set at 25 percent as of 1 August – will be reduced to 18 percent.