Business & Economics
Trump–Modi ‘Phase One’ Trade Pact Cuts U.S. Tariff on Indian Goods to 18%
On 3 Feb 2026, President Trump said the U.S. reciprocal tariff on Indian imports would fall from 25% to 18% immediately after a phone call with PM Modi that tied the cut to India curbing Russian-oil purchases and boosting U.S. imports.
Focusing Facts
- Trump’s Truth Social post cites an “effective immediately” drop of the U.S. tariff on Indian goods from 25 % (peaked at 50 % in Aug 2025) to 18 %.
- Trump claims Modi pledged India will spend "over $500 billion" on U.S. energy, technology, agriculture, coal and other products.
- Asia Society analysts note the announcement came one week after India signed an FTA with the EU on 27 Jan 2026, suggesting competitive timing.
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Perspectives in this article
- Pro-government Indian media and business outlets
- Indian opposition-aligned/critical outlets
- International financial and policy-analysis press