Desi Talk

www.desitalk.com – that’s all you need to know 4 COVER STORY February 6, 2026 PM Modi, President Trump Announce Breakthrough In Trade/Tariffs Deal P rime Minister of India Narendra Modi announced that US tariffs on Indian products had been reduced to 18 percent byWash- ington, in a breakthrough after months of negotiations between the two nations. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%,” Modi posted Feb. 2, on X.com/narendramodi. President Trump confirmed the deal with a post on Truth Social that a trade deal had been struck with India and tariffs were being reduced to 18 percent from 25 percent. In a rapidly developing story of high import to both United States and India, leaders of the two countries appeared to have averted a trade confrontation. President Trump’s post on Truth Social following a call with Modi, said, “t was an Honor to speak with Prime Min- ister Modi, of India, this morning. He is one of my greatest friends and, a Power- ful and Respected Leader of his Country,” Trump said, adding, “We spoke about many things, including Trade, and end- ing theWar with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.” The President said that step would help “END THEWAR in Ukraine.” He went on to add, “Out of friendship and respect for Prime Minister Modi and, as per his request, effective immedi- ately, 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% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barri- ers against the United States, to ZERO.” Modi, the President said, “also com- mitted to “BUY AMERICAN,” at a much higher level, in addition to over $500 BIL- LION DOLLARS of U.S. Energy, Technol- ogy, Agricultural, Coal, and many other products.” Washington’s “amazing” relationship with India will be even stronger going forward, the President predicted. “Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most.”The President went on to add that Modi had also com- mitted to buying more than $500 billion dollars products in U.S. energy, technol- ogy, agricultural and other sectors. AWhite House official told Reuters the Trump administration is dropping the 25% additional tariffs it had previously imposed on Indian imports because of its purchases of Russian oil. In addition, it is lowering a country-specific tariff to 18% from 25 percent. “We are also dropping the 25% tariff given India’s agreement to stop buying Russian oil,” the official is quoted saying in the Reuters report. According to Reuters, U.S.-listed shares of major Indian companies rallied on the news about the trade deal men- tioned by the two leaders. IT consulting firm Infosys was up 3.53% in afternoon trading, consultancyWipro rose 7% , HDFC Bank gained 3.4% and the iShares MSCI India exchange-traded fund rallied 3.3%, Reuters reported. On Saturday, January 31, Trump had broached the idea of a potential deal for India to buy Venezuelan oil after the US seized control over that country. In August 2025, the Trump adminis- tration had doubled duties on imports from India to 50% in a bid to stop New Delhi from purchasing Russian oil, and in January, the President had threatened another rate rise. Purchases of Venezuelan oil would help replace some of the Russian oil bought by India, the world’s third-biggest oil importer purchasing 90 percent of its needs, Reuters noted. New Delhi has over the last year been reducing its purchases of Russian oil, particularly after Moscow’s invasion of Ukraine and subsequent sanctions on such purchases by different countries. “Recently India has begun to slow its purchases from Russia. In January, they were around 1.2 million barrels per day, and are projected to decline to about 1 million bpd in February and 800,000 bpd in March,” according to a Reuters report. India’s External Affairs Minister S. Jais- hankar is expected to be inWashington starting February 3, ostensibly to carry forward discussion on the latest agree- ment. From News Dispatches By a StaffWriter PHOTO:REUTERS/KEVIN LAMARQUE/FILE PHOTO U.S. President Donald Trump and Indian Prime Minister Narendra Modi shake hands as they attend a joint press conference at the White House in Washington, D.C., U.S., February 13, 2025. I ndian American community leaders, organizations and think tanks ap- plauded the announcement February 2, 2026, of an imminent trade deal betweenWashington and New Delhi that brings down tariffs on Indian goods and could herald a return to normal bilateral relations after months of tension. “This agreement is a great relief for India and good news for the United States. The reduction of tariffs to 18 percent is most welcome relief to India and its economy. And at the same time, US can see its exports with India increase,” said Padma Shri recipient Dr. Sudhir Parikh, chairman of ParikhWorldwide Media/ ITV Gold. “Hopefully the Ts will be crossed and the Is will be dotted soon between these two great democracies with the arrival of India’s External Affairs Minister Jaishankar,” he added. EAM S. Jaishankar arrived in D.C. February 2, 2026. “It’s a big breakthrough. It happened because the two leaders spoke. But also a lot of credit must go to newly ap- pointed Ambassador Sergio Gor to India. He has the ear of the President, and this agreement comes within a month of his reaching India,” said M.R. Rangaswami, founder of IndiaSpora, an advocacy orga- nization based in California. “We are very excited that everything seems to be back to normal and we can move forward.” The US India Strategic Partnership Forum (USISPF) welcomed the agree- ment, saying, “The reduction of India’s reciprocal tariff from 25% to 18%marks an important and positive first step. While the agreement’s specifics are pending, today’s announcement signals strong po- litical will on both sides to move toward a comprehensive U.S.–India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors.” Describing it as a “constructive” mo- mentum the USISPF expressed optimism about the future, and committed to helping expand bilateral trade to the $500 billion target. Wendy Cutler, senior vice president of the Asia Society Policy Institute, called the announcement of the trade deal, as still “light on details.” “The announcement is certainly a relief to our Indian partners, who have faced some of the highest tariff rates of any partner,” said Cutler, the for- mer Acting Deputy US Trade Representa- tive. “It will help clear the pathway for the U.S. and India to work cooperatively on other pressing matters concerning critical minerals, technology cooperation, and supply chain resiliency.” Reducing the U.S. reciprocal tariff for India to 18%, gives Indian exporters “a slight edge in the U.S. market over its ASEAN competitors who have secured 19- 20% tariffs,” Cutler pointed out. Emerging US-India Trade Deal Lauded By Community Leaders, Think Tanks