Trump announces India-US trade deal; American tariffs lowered to 18 %
US President Donald Trump on Monday confirmed that India and the United States have finalised a trade agreement following a phone conversation with Prime Minister Narendra Modi. As part of the deal, US tariffs on Indian goods will be reduced from 25 per cent to 18 per cent.
In return, India has agreed to stop buying Russian oil, and will purchase $500 billion worth of US energy and tech, Trump said in a post on Truth Social.
How much tariff will India pay now?
Under the newly announced India-US trade deal, the United States will levy a reduced tariff of 18 per cent on Indian goods. This marks a cut from the earlier 25 per cent tariff and is expected to provide relief to Indian exporters by making their products more competitive in the US market. According to US President Donald Trump, the revised tariff rate will come into effect immediately.
PM Modi Spoke to Trump
Prime Minister Narendra Modi acknowledged the development on social media platform X, expressing gratitude to US President Donald Trump for the announcement and welcoming the reduction in US tariffs on Indian goods. “It was wonderful to speak with President Trump today. I am pleased that Made in India products will now face a reduced tariff of 18 per cent. I thank President Trump on behalf of the 1.4 billion people of India,” Modi said.
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.
— Narendra Modi (@narendramodi) February 2, 2026
When two large economies and the…
Trump's statement about PM Modi
US President Donald Trump said it was an honour to speak with Prime Minister Narendra Modi, calling him one of his greatest friends and a respected global leader. He added that both leaders are people who “get things done,” and said their discussion covered trade and the Russia-Ukraine conflict.
Stocks to watch out for tomorrow after IND-US Trade deal
- IT Stocks
- Textile Stocks
IT stocks moved on H-1B concerns and a weaker rupee during trade deal uncertainty. With the rupee likely to strengthen post-announcement, stocks like TCS, Infosys, HCLTech, Persistent and Coforge remain in focus.
Textile stocks like Gokaldas Exports, Welspun Living and KPR Mill, earlier hit due to heavy US exposure, may benefit as the 18% tariff gives them an edge over rivals like Bangladesh and Vietnam, taxed at 20%.
Also Read: Budget 2026: Key Tax Changes Every Indian Should Know
