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In a late-night development on 2nd of February 2026, the Prime Minister Narendra Modi has announced that Made in India products will now have a reduced US tariff of 18%.

He made the announcement in a social media post after talking to US President Donald Trump.

The Prime Minister stated that it was wonderful to speak with his dear friend, President Trump, adding that when two large economies and the world’s largest democracies work together, it benefits people and unlocks immense opportunities for mutually beneficial cooperation.

Both the countries now formally agree to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent.

Donald Trump in his social media message stated India will move forward to reduce “tariffs and non tariff barriers” against the US to zero.

“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 per cent to 18 per cent,” the US president said on social media.

India will “likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero”, he said.

Trump said Modi also committed to “buy American” at a much higher level, in addition to over USD 500 billion dollars of US energy, technology, agricultural, coal, and many other products.

“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done something that cannot be said for most,” he said.

It may be recalled that US administration had slapped 50 per cent punitive tariffs on India, including 25 per cent for its purchase of Russian oil.

Last night the US Embassy spokesperson Christopher Elms in New Delhi had said “the final tariff on Indian goods is now 18 percent”.

‎In the same post, Trump said the leaders also discussed broader strategic issues, including the war between Russia and Ukraine.

‎“He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine…” Trump wrote, connecting India’s energy sourcing choices with global security outcomes.

‎‎The principal opposition party Congress was quick to react raising questions on the deal.

Congress MP Manish Tiwari on Tuesday the 4th of February 2026 was quoted by news agency ANI while raising questions whether India has sacrificed its strategic autonomy to seal the trade deal with USA, which would require India to divert its oil purchases from Russia to the US and “potentially” to Venezuela.

Tiwari also remarked on the tariff imbalance in the trade deal where India will apply possibly no tariffs US imports, whereas America will leavy  a “reduced” reciprocal tariff of 18 per cent on New Delhi’s exports, as per the details shared by US President Donald Trump on X.