02.04.2026 – (12:01 PM)

Shares in the Mumbai stock market rose on February 3 after US President Donald Trump announced a trade deal that would reduce tariffs on India.

Indian Prime Minister Narendra Modi promised to stop buying oil from Russia, which is fighting a war in Ukraine, Trump said.

Trump said he had reduced tariffs on Indian goods to 18 percent. Previously, a 25 percent tariff was levied on a wide range of products, and India has added another 25 percent because it buys Russian oil.

The deal eased tensions over India’s oil purchases. The US has said it will end its funding of the war. It also marks a rekindling of the close relationship between Trump and Modi, whom Trump calls one of his “greatest friends.”

Modi also thanked Trump for the “very encouraging” call and the reduction in tariffs. However, Modi did not mention Trump’s promise to stop buying Russian oil.

“With great respect for Prime Minister Modi, we have immediately agreed to a trade deal between the United States and India at his request,” Trump wrote on Truth Social.

Trump also said in the post that the US would reduce the tariff on India from 25 percent to 18 percent, which was imposed last year under the so-called “Global Independence Day Trade Tariffs.”

A White House official told AFP that the additional 25 percent tariff on India’s oil imports from Russia would also be eliminated.

Modi agreed to stop buying Russian oil, Trump added in the post. He promised to buy more oil from the United States and Venezuela, which the US president said would help end the war in Ukraine.

Trump said India had agreed to buy more than $500 million worth of American energy, technology, agricultural products, coal and other goods, but did not provide details.