India‑US trade deal will send more US farm products to India’s market, says US agriculture secretary

The trade deal, confirmed by both leaders, will lower reciprocal tariffs on Indian goods from 25% to 18%.

• US-India trade deal to boost US farm exports, cut agricultural trade deficit
• Reciprocal tariffs on Indian goods cut from 25% to 18%, effective immediately
• India to purchase over $500B in US energy and tech products.

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The US‑India trade deal, announced late Monday evening, is projected to boost exports of American farm products to India’s market, lifting prices and pumping cash into rural America, says US Secretary of Agriculture Brook Rollins.

Taking to microblogging site X early Tuesday morning, she wrote, "New US-India deal will export more American farm products to India's massive market, lifting prices, and pumping cash into rural America. In 2024, America’s agricultural trade deficit with India was $1.3 billion. India’s growing population is an important market for American agricultural products and today’s deal will go a long way to reducing this deficit."

Thank you @POTUS for ONCE AGAIN delivering for our American farmers. New US-India deal will export more American farm products to India's massive market, lifting prices, and pumping cash into rural America. In 2024, America’s agricultural trade deficit with India was $1.3… https://t.co/Z04eNDfXjD

— Secretary Brooke Rollins (@SecRollins) February 2, 2026

She shared a post from the White House announcing that US President Donald Trump spoke to Prime Minister Narendra Modi on Monday, during which PM Modi agreed to stop buying Russian oil and increase purchases from the U.S., potentially including Venezuela. “This will help END THE WAR in Ukraine,” Trump noted.

The trade deal, confirmed by both leaders, will lower reciprocal tariffs on Indian goods from 25% to 18%. Trump said the agreement was “effective immediately,” adding, “Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, 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%.”

Soon after, PM Modi welcomed the development, saying, “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”

The prime minister underscored the broader significance of the agreement, “When two large economies and the world's largest democracies work together, it benefits the people and unlocks immense opportunities for mutually beneficial cooperation. I look forward to working closely with him to take our partnership to unprecedented heights.”

Trump also said India will reduce tariffs and non-tariff barriers against US goods to zero. He added that PM Modi has committed to buying American products at much higher levels, including over USD 500 billion worth of energy, technology, agricultural products, coal, and other goods.

The rollback comes after months of pressure from steep tariff hikes, some as high as 50%, imposed from August 27, 2025, which had raised landed costs, hurt competitiveness, and dampened demand for Indian goods in the US, India’s largest export market. With tariffs now eased, companies with significant US exposure are expected to see margin relief, improved competitiveness, and better order visibility.