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India US Trade Deal News LIVE: US President Donald Trump, on Monday, 2 February 2026, announced that the United States and India have agreed on a long-awaited trade deal and in exchange, the western nation is cutting the import tariffs.
Although Trump has claimed that India and the US have entered into a trade deal, there has been no official announcement about any bilateral trade agreement from the Indian authorities, except for Indian Prime Minister Narendra Modi's late-night post on platform X, thanking Trump for his move.
What is the agreement between India and the USA?
In his Truth Social post on Monday, Trump announced that the United States is cutting the ‘reciprocal tariffs’ on all Indian imports to the country to 18%, compared to their earlier 25% with immediate effect.
“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% to 18%,” said Trump on 2 February 2026.
PM Narendra Modi thanked his ‘dear friend’, Donald Trump, on behalf of the entire country for reducing the reciprocal tariffs to 18%, which were imposed along with additional tariffs in 2025.
“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,” said Modi.
What is India's trade relation with US?
According to the Ministry of Commerce and Industry data, India exports nearly 13.34% of its items to the United States, marking the country as the largest export market of Indian traders.
While the industry data agency, India Brand Equity Foundation (IBEF), data showed that the bilateral trade between India and the US stood at a record $132.2 billion in the financial year ending 2024-25.
What does the trade deal mean for India?
Experts said that a trade deal between India and the United States, which is supported by the tariffs in both nations, is set to bring an ‘export-competitive posture’ for India amid the wider supply-chain recalibration away from China.
“The move reinforces India’s export-competitive posture, supported by recent customs duty rationalisation, and comes amid a broader U.S. supply-chain recalibration away from China,” said Rudra Kumar Pandey, Partner at Shardul Amarchand Mangaldas & Co.
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Read all India-US trade deal-related latest developments LIVE here at Mint
3 Feb 2026, 04:16:49 PM IST
India US Deal LIVE Updates: How much does India trade with the US?
Ministry of Commerce and Industry data shows that India exports nearly 13.34% of its total items to the United States, making America the largest export market for Indian traders.
3 Feb 2026, 04:16:49 PM IST
India US Deal LIVE Updates: How much tariff did Trump reduce?
On Monday, 2 February 2026, US President Donald Trump cut the reciprocal tariffs on India to 18% with immediate effect, from earlier 25% levels.
However, no announcement has been made from either side on the additional tariffs of 25% which were imposed after 25% reciprocal tariffs on India for buying Russian oil.
Effective Monday, the tariff reduction from the raging 50% total duty on India will now come down to 43%, until further update from either of the countries.
On the additional tariffs and Russian oil, Trump claimed that India has reportedly agreed to ‘stop buying Russian Oil’ and buy more from the United States. Yet there is no official confirmation from the Indian authorities.
English (US) ·