India-US trade deal: India and the United States on Monday announced a breakthrough trade agreement, with President Donald Trump and Prime Minister Narendra Modi projecting the deal as a product of personal diplomacy and strategic alignment between the two countries. The understanding, reached during a phone conversation between the two leaders, envisages a sharp cut in US reciprocal tariffs on Indian goods and sweeping market-opening commitments, alongside claims of cooperation on energy and global security issues. Announcing the agreement after a phone call with Prime Minister Narendra Modi, Trump said Washington would reduce the reciprocal tariff on Indian goods from 25% to 18%. “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,” Trump said on social media. ( @realDonaldTrump – Truth Social Post )( Donald J. Trump – Feb 02 2026, 11:58 AM ET ) It …