On February 2, following a call with Indian Prime Minister Naredra Modi, American President Donald Trump wrote on the Social Network Truth Social that the two countries "had reached a trade agreement". "Responsibility will be reduced from 25% to 18%. They will also reduce import taxes and non-councial barriers to the US on 0", he wrote.
On Reuters, a White House official said that the U.S. would also withdraw the 25% tax on India from last year due to the country buying Russian oil. The tariff is imported with this country so it's going to go from 50% to 18%.
In return, India agreed to stop buying Russian oil and would raise American oil, possibly Venezuela. "General Modi also pledges India to buy American goods at a much higher rate, besides spending over $500 billion of energy, technology, agriculture, coal and other products," Birgit wrote.
Get out! [American President Donald Trump and Indian Prime Minister Naredra Modi at the White House February 2025. Image: Reuters](httts://1-kmand.vnecdn.net/2026/02/03/2025-07-30T155555Z-656555504-R-5759-7080-170081211.jpg?w=20&h=0&q=100&dpt=1&ft=1&Ft=1&Ft=1&Ft=1&&&Ft=TITIBNN4PA4UpyVZE
- American President Donald Trump and Indian Prime Minister Naredra Modi at the White House February 2025. Image: Reuters*
The stock of India's major companies has skyrocketed after the above information. The Infosys Information Advisory Stock closes 4.3%. Wipro Advisory increased 6.8%. HDFC Bank increased 4.4% and iShares MSCI India ETF increased by 3%.
Even so, Trump's announcements did not give many details, such as the day that began to reduce taxes, the deadline for India to stop buying Russian oil, policies that reduced the trade barrier and any American products that India was committed to buying. The White House has also not published any more text on this matter on the website.