Trump calls Modi a “good friend” and the personal rapport is real—evident in quick Feb 2026 talks.
**Policy reality:** 2025 reciprocal tariffs hit India at ~25% extra 25% (Russian oil penalty) to cut the ~$45B US goods deficit.
**Feb 2026 interim deal (White House Joint Statement):**
- US reciprocal tariff on Indian goods lowered to **18%** (from 25%), extra 25% removed.
- Zero duties on Indian generics, gems/diamonds, aircraft parts (post-implementation).
- India cuts tariffs on US industrial/agri goods, stops Russian oil buys, commits to **$500B ** US purchases (energy, tech, aircraft, coal).
- Boosts US-India tech trade & cooperation (GPUs, data centers, digital rules).
**Tech/trade impact:** IT services largely unaffected. Electronics/smartphone exports resilient & grew via China 1 (some periods 20% to US despite tariffs). Textiles/gems hit harder initially. Deal reduces uncertainty & opens US market access.
Personal ties helped deliver a pragmatic outcome under reciprocal trade pressure. Data from White House & USTR.