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India-US
A file image of Donald Trump and PM Narendra Modi when they met in the past. Photo: PIB

Trump-Modi deal sparks cheers: Business leaders back trade breakthrough

| @indiablooms | Feb 03, 2026, at 09:18 am

Leading advocacy groups in India and the United States have welcomed the breakthrough in bilateral trade ties following months of tariff tensions between the two countries.

In a joint statement, the US Chamber of Commerce and the US-India Strategic Partnership Forum (USISPF) described the development as a long-awaited step forward for businesses in both nations.

“We congratulate the U.S. and Indian governments on their decision to reduce tariffs and non-tariff barriers, which will benefit companies and workers in both countries,” the Chamber said. It also appreciated the efforts of President Donald Trump and Prime Minister Narendra Modi, along with senior officials including Ambassadors Kwatra and Gor.

The Chamber said it views the announcement as an initial step toward a comprehensive trade agreement that could unlock deeper private-sector collaboration.

“We look forward to reviewing the details of the deal and partnering with both governments to implement today’s announcement,” it added.

Echoing similar sentiments, USISPF said the move reaffirmed the shared commitment of President Trump and Prime Minister Modi to strengthen the U.S.–India economic partnership and advance a broader bilateral trade agreement (BTA).

“A BTA between the two nations would deliver meaningful benefits for businesses, workers and consumers, while strengthening supply chains and economic resilience,” USISPF said. It noted that additional phases of negotiations are expected in the coming months and expressed optimism about expanding bilateral trade toward the $500 billion target.

The statements came after President Trump announced that the United States and India had agreed to a new trade deal following a phone call with Prime Minister Modi.

Under the agreement, the United States will immediately reduce its reciprocal tariff on Indian imports from 25% to 18%. Trump, posting on Truth Social, said the deal was reached “out of friendship and respect” for Modi. He added that India has agreed to eliminate tariffs and non-tariff barriers on U.S. goods.

Trump also said India would halt purchases of Russian oil and increase energy imports from the United States — a move he linked to efforts aimed at ending the war in Ukraine.

Prime Minister Modi confirmed the development in a post on X, welcoming the tariff reduction to 18% on “Made in India” products and thanking President Trump for the decision. He said closer cooperation between the world’s largest democracies would unlock significant opportunities for mutually beneficial growth.

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