'Best Deal Among All Neighbours': Piyush Goyal Credits PM Modi's Trump Ties For US Trade Agreement

Last Updated:February 03, 2026, 17:34 IST

US President Donald Trump announced a substantial reduction in reciprocal tariffs on Indian goods, slashing rates from 50% to 18%.

Commerce Minister Piyush Goyal

Commerce Minister Piyush Goyal hailed the newly announced India-US trade agreement as the best deal finalized with any neighboring country, attributing the breakthrough to Prime Minister Narendra Modi’s strong personal relationship with US President Donald Trump and emphasizing that national interests remained paramount throughout negotiations.

“Today all Indians are thankful to PM Modi for the trade deal with the United States," Goyal said, adding, “The trade deal is outstanding and much awaited by the country while keeping country’s interests in the fore. This is the best among all the deals finalised with neighbours. I want to congratulate everyone as this deal will bring a lot of opportunities for India’s economy."

The agreement comes after US President Donald Trump announced a substantial reduction in reciprocal tariffs on Indian goods, slashing rates from 50% to 18% following a high-level telephone conversation with Prime Minister Modi.

The tariff cut marks a significant turnaround for India, which had been subjected to the world’s highest import duties after President Trump doubled tariff rates from 25% to 50% in August last year. The punitive measures were imposed in response to New Delhi’s continued purchases of discounted Russian crude oil, which Washington argued provided financial support for Moscow’s military operations in Ukraine.

Piyush Goyal stressed that throughout the negotiation process, protecting India’s national interests remained the government’s top priority, suggesting that the final agreement achieved a balance between market access commitments and safeguarding domestic economic concerns.

Following his conversation with PM Modi, Trump revealed that the Indian leader had “agreed to stop buying Russian oil, and buy much more from the United States, and potentially Venezuela." PM Modi expressed his appreciation to Trump “on behalf of the 1.4 billion people of India for this wonderful announcement," stating that he hoped to take the US-India partnership to “unprecedented heights."

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