The U.S. and India have finalized a trade deal on Monday after months of negotiations, steadying a relationship that had plummeted to its lowest point in decades.

US President Donald Trump announced that the United States and India have agreed on a long-awaited trade deal and the western nation is cutting the reciprocal import tariffs on Indian imports. Follow for the latest updates you need to know about the trade deal.

India’s prime minister, Narendra Modi, confirmed the reduction in tariffs, though he was mum on Mr Trump’s claim that India had committed to buy more American goods, including $500bn worth of energy and agricultural products.

The relationship between India and Canada has been visibly on the mend since Mr. Modi attended the Group of 7 summit in Alberta at Mr. Carney’s invitation in June 2025, shortly before the shock of the American tariffs.

U.S. President Donald Trump on Monday stateside said that U.S. will cut reciprocal tariff on India to 18% from 25%.

Pakistan have threatened to boycott their T20 World Cup 2026 game against India, which will take place in Colombo on February 15. Both India and Pakistan are in Group A with USA, Namibia, and the Netherlands.

The India–US trade agreement and Union Budget 2026 together send a strong signal of policy continuity and long-term growth intent, said Ajay Garg, Director and CEO of SMC Global Securities.

By Shivangi Acharya NEW DELHI, Feb 3 (Reuters) - India has agreed to buy petroleum, defence goods, and aircraft from the U.S., while partly opening up its highly-guarded agriculture sector under a trade deal,