14/07/2026
Trump And Modi Seal Major US-India Trade Deal: Tariffs Chopped Back, $500B Target Put on the Table
US President Donald Trump along with Indian PM Narendra Modi announced a major interim trade agreement on February 2, 2026, in Washington D.C. and also in New Delhi at the same time. The arrangement reduces US tariffs on Indian exportsβthings like textiles and pharmaβfrom as high as 50% down to 18%, with India responding by lowering tariffs on American goods, plus widening its purchases of US energy and aircraft that together come in at billions. The whole point is to aim for $500B in trade volume.
Both sides say itβs mainly about correcting trade imbalances, and also about deepening strategic alignment. In other words, it happened through heavy-duty diplomacy, plus reciprocal give and take, no surprise there. For businesses and workers, the expectation is more exports, more jobs, and steadier bilateral growth, all tied together with this βinterimβ framework thatβs supposed to keep momentum going.
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