U.S. Ambassador to India Sergio Gor confirmed that President Donald Trump recently spoke with Prime Minister Narendra Modi. While details of the conversation were not disclosed, the call comes amid efforts by both countries to finalise a bilateral trade agreement.
Reduced U.S. Tariffs on Indian Goods
President Trump announced that the United States has agreed to lower reciprocal tariffs on Indian products from 25 percent to 18 percent. The decision takes effect immediately and follows a direct request from Prime Minister Modi, according to Trump’s social media post.
India’s Commitments Under the Deal
Trump stated that India has agreed to:
- Increase imports of U.S. energy, technology, agricultural, and other products to over $500 billion
- Reduce tariffs and non-tariff barriers on U.S. goods
- Stop purchasing Russian oil
- Buy more oil from the United States and potentially Venezuela
Modi Welcomes Agreement
Prime Minister Modi confirmed the trade deal and welcomed the tariff reduction for Made in India products. In a post on X, he thanked President Trump on behalf of India’s 1.4 billion people and described the agreement as a step that would unlock major opportunities for cooperation.
Strategic Partnership Emphasised
Modi highlighted that collaboration between the world’s two largest democracies benefits global peace, stability, and prosperity. He also expressed support for Trump’s leadership on global peace initiatives and said he looked forward to expanding the partnership further.
Relief from Earlier Penalty Tariffs
The reduced tariff rate is expected to significantly ease the impact of the steep penalty tariffs imposed by the U.S. on Indian goods in August 2025, which had strained bilateral trade relations.
Political Reactions in India
The Congress party responded critically to the announcement. Party leader Jairam Ramesh said the agreement appeared to show India conceding to U.S. pressure.
Official Clarifications Awaited
India’s Ministry of External Affairs has not yet responded to questions regarding the specifics of the deal, including claims related to oil imports and tariff reductions on U.S. goods.
Context: Jaishankar’s U.S. Visit
The Trump–Modi call coincided with External Affairs Minister S. Jaishankar’s visit to the United States from February 2 to 4. He is attending the Critical Minerals Ministerial, which focuses on supply chain resilience, clean energy transitions, and reducing dependence on China for critical minerals.
