India-US Trade Deal Unveiled Amid Positive Talks
February 3, 2026
In a significant development, US Ambassador to India Sergio Gor has announced that President Donald Trump recently had a conversation with Prime Minister Narendra Modi. Gor’s statement came as India and the United States are making strides toward finalizing a new trade deal.
During the call, Trump revealed that he has agreed to a trade deal with India, emphasizing that India would cease purchasing Russian oil and purchase more from the US and possibly Venezuela. This trade agreement includes a notable reduction in tariffs, decreasing from 25% to 18% for Indian goods entering the US.
Trump took to social media to express his appreciation for Modi. He stated, “Out of friendship and respect for Prime Minister Modi, and as per his request, we have agreed to a Trade Deal that lowers tariffs.” He also highlighted Modi’s commitment to buy over $500 billion worth of American resources, including energy and technology.
Prime Minister Modi responded positively on social media. “It was wonderful to speak with my dear friend President Trump today. I’m thrilled that Made in India products will now face reduced tariffs,” he commented, thanking Trump on behalf of the Indian populace.
Modi noted the immense potential when the two largest democracies collaborate. He added, “President Trump’s leadership is vital for global peace and stability. India supports his peace efforts wholeheartedly.”
This latest dialogue continues a trend of collaboration between Modi and Trump, who last spoke in December, focusing on shared goals and global issues. Both leaders have expressed commitment to deepening India-US relations.
India’s Commerce Minister Piyush Goyal described the new trade agreement as a historic moment that opens up exciting opportunities for farmers and small businesses, furthering initiatives like “Make in India.”
As the news unfolds, political reactions vary. While members of the ruling party praised the deal as a step forward, opposition voices have raised concerns about its broader implications. Critics argue that more details need to be disclosed regarding the trade agreement’s long-term effects on the Indian economy and its impact on local industries.
In summary, the trade deal between India and the US is seen as a promising step towards enhancing economic ties and benefiting both nations amidst various geopolitical factors.
