Trump cuts US tariff on Indian goods to 18% after call with PM Modi
US President Donald Trump announced on 2 February 2026 that the US tariff on Indian goods would fall to 18% from 25%, and Prime Minister Narendra Modi thanked him in a phone call the same day.
Summary
US President Donald Trump announced on 2 February 2026, after speaking with Prime Minister Narendra Modi, that the reciprocal tariff on Indian goods would be lowered to 18% from 25%. A White House official told Reuters the US was also dropping the separate 25% additional tariff it had imposed over India's purchases of Russian oil, so the combined rate on Indian goods falls from 50% to 18%. According to AP and CNN, Trump said Modi had agreed to stop buying Russian oil; CNN reported Trump said India would replace Russian crude with oil from the United States and Venezuela. Modi's own post on X, released by the PMO, thanked Trump on behalf of 1.4 billion Indians for reducing the tariff on Made in India products to 18% and did not mention Russian oil.
Key facts
- Announced
- 2 February 2026, by President Trump after a call with PM Modi
- Reciprocal tariff
- 25% → 18%
- Russian-oil penalty
- Separate additional 25% tariff (imposed August 2025) to be dropped
- Combined rate
- 50% → 18%
- Trump's claim
- India to stop buying Russian oil; replace it with US and Venezuelan oil
- Modi's response
- Thanked Trump on behalf of 1.4 billion Indians; no mention of Russian oil
Practice MCQs 4 questions
On 2 February 2026, President Trump announced that the US reciprocal tariff on Indian goods would be cut to 18% from what level?
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Correct answer: B — 25%
Trump said the reciprocal tariff would fall from 25% to 18%.
The separate additional 25% US tariff on Indian goods, which the White House said on 2 February 2026 would be dropped, had been imposed over what?
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Correct answer: D — India's purchases of Russian oil
The additional 25% tariff was imposed in August 2025 over India's purchases of Russian oil.
According to CNN, President Trump said on 2 February 2026 that India would replace its Russian crude imports with oil from which countries?
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Correct answer: B — The United States and Venezuela
CNN reported Trump said Modi agreed to replace Russian crude with oil from Venezuela and the United States.
Consider the following about the US tariff announcement of 2 February 2026: 1. With the additional 25% tariff also dropped, the combined US tariff on Indian goods falls from 50% to 18%. 2. PM Modi's post on X confirmed that India would stop buying Russian oil. Which of the above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. Modi's X post thanked Trump for the 18% tariff but did not mention Russian oil.