# India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent.

*business · news · 2026-02-03 · Daily Excelsior*

## Key points

- The US will reduce reciprocal tariffs on Indian goods from 25 percent to 18 percent.
- India has committed to gradually reducing tariffs and non-tariff barriers against the US to zero.
- Prime Minister Modi committed to increase 'Buy American' purchases above USD 500 billion in multiple sectors.
- The tariff reductions are effective immediately, according to President Trump's statement.

**Countries:** India, United States

[Read the full story on Daily Excelsior](https://www.dailyexcelsior.com/us-india-agreement-on-trade-deal-trump-after-phone-talks-with-pm-modi/)

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