February 3, 2026 | 04:50 pm
TEMPO.CO, Jakarta - U.S. President Donald Trump on Monday said he agreed to a trade deal with India following a phone call with Indian Prime Minister Narendra Modi.
"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 percent to 18 percent," Trump said in a social media post.
Trump added that India had agreed to stop buying Russian oil, something which he has claimed in the past.
He said India would also reduce its import taxes on U.S. goods to zero and buy $500 billion worth of U.S. energy, technology and agricultural products.
The president did not provide further details of the oil purchases, other than saying India would buy "much more from the United States and potentially Venezuela."
Modi welcomes tariff cut
The Indian government has not yet issued an official statement, but Modi confirmed the tariff reductions in a post on X.
"When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation," Modi said.
What tariffs has India faced?
India has faced two sets of tariffs from the U.S. since Trump took office in January 2025.
In July, Trump announced a 25 percent tariff on goods from India, claiming New Delhi had not done enough to narrow a steep trade surplus.
Trump has also sought to put pressure on New Delhi over its increased purchases of Russian oil since Moscow launched its war in Ukraine.
In addition to the so-called reciprocal tariffs of 25 percent, in August, Trump imposed an additional import tax of 25 percent on certain Indian products over the oil purchases, bringing the total to 50 percent, which was the highest among U.S. trade partners.
On Monday, the White House said the additional 25 percent tariff on Indian imports would be dropped in response to India reducing Russian oil purchases.
"This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!" Trump added in his Truth Social post.
Modi's response on X did not mention any agreement on oil.
Trump has long enjoyed a warm relationship with Modi, which has been complicated in the U.S. president's second term by India's ties with Russia, and Trump's tariff policy.
The two last met in February in Washington, during which Trump said India would start buying more U.S. petroleum products. However, those trade talks faltered as Trump began rolling out tariffs.
Trump's announcement comes days after India reached a landmark free trade agreement with the European Union, enabling free trade on almost all goods between the EU's 27 members and India.
Read: Trump Threatens Tariffs on Countries Selling Oil to Cuba
Click here to get the latest news updates from Tempo on Google News
Indonesia Concludes Tariff Talks with United States
6 menit lalu
Both the Indonesian and U.S. governments will report the agreement results to their respective parliaments.
Palace Discusses Plans for Prabowo-Trump Meeting
1 jam lalu
Prabowo and Trump will discuss the trade import tariff agreement between Indonesia and the United States during their meeting.
Indonesian Govt Defends Joining Trump's Board of Peace, Seeks Talks with MUI
8 jam lalu
The Indonesian government plans to invite the Indonesian Ulema Council (MUI) to a dialogue regarding Trump's Board of Peace.
Iran's Khamenei Warns U.S.: Any Attack Could Spark 'Regional War'
17 jam lalu
Iran's Supreme Leader Ali Khamenei warns the U.S. that any attack could trigger a "regional war" amid rising military tensions.
Prabowo-Trump Schedule Delays Final Tariff Negotiations
1 hari lalu
Coordinating Minister Airlangga confirms the RI-US trade tariff deal is delayed until February 2026, pending a meeting between Prabowo and Trump.
Diplomatic Difficulties Under Foreign Minister Sugiono
1 hari lalu
President Prabowo Subianto is keeping control of foreign policy to himself. Foreign Minister Sugiono's role is barely noticeable.
Iran Hints at Progress Toward Negotiations with US
2 hari lalu
Trump also said there was contact between Washington and Tehran. It comes as the US has deployed several warships off the Iranian coast.
US Eyes Red Sea as State Envoy Visits Africa
2 hari lalu
Washington has said a visit to Africa aims to strengthen bilateral ties, but the timing raises question about US' interest in the Red Sea corridor.
Iran: Explosion Hits Bandar Abbas Port - Reports
2 hari lalu
The reported blast in the Iranian city of Bandar Abbas comes amid heightened US-Iran tensions. The cause of the explosion is still unknown.
US Government Enters Partial Shutdown
2 hari lalu
Funding for around three-quarters of federal operations has been affected after Congress failed to approve a 2026 budget.
