Big Breaking: Trump Lowers Tariffs on India from 25% to 18%

Article by Kumar Published on: 10:49 pm, 2 February 2026

The India-EU Free Trade Agreement (FTA), dubbed as the “mother of all” trade deal, as expected, had evoked response from US President Donald Trump. Trump announced that he would reduce the reciprocal tariffs from 25 per cent to 18 per cent.

The announcement was made after he had spoken with Prime Minister Narendra Modi on phone on Monday. However, an additional 25 per cent tariff on Indian exports would still be imposed.

Trump said that India and the US have fianlised a trade deal, which has been getting delayed for the last few months.

Trump announced about the trade deal on Truth Social: “It was an Honor to speak with Prime Minister Modi, of India, this morning. He is on of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and ukraine. he agreed to stop buying Russian Oil. and, a Powerful and Respected Leader of his Country.

We spoke about many things, including Trade, and ending the War with 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 EMD THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!”

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. The Prime Minister also committed to “BUY AMERICAN” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal and many other products.”