India-US Trade Deal To Boost American Farm Exports, Cut $1.3 Bn Agri Deficit: Trump Aide

Last Updated:February 03, 2026, 12:52 IST

US Secretary of Agriculture Brooke Rollins said the deal will raise prices and pump cash into rural America.

US President Donald Trump with PM Narendra Modi (Photo: AP)

India and the United States announced a trade deal on Monday. The agreement reportedly includes the agricultural sector, which had been a sticking point in previous trade talks. India had previously refused wider market access to protect its farmers from competition with US agricultural products.

Boost for American farm exports

The US‑India trade deal, announced late on Monday evening, is expected to increase exports of American farm products to India’s market. US Secretary of Agriculture Brooke Rollins said the deal will raise prices and pump cash into rural America.

Rollins wrote on X early on Tuesday morning, “New US‑India deal will export more American farm products to India’s massive market, lifting prices, and pumping cash into rural America. In 2024, America’s agricultural trade deficit with India was $1.3 billion. India’s growing population is an important market for American agricultural products and today’s deal will go a long way to reducing this deficit."

She also thanked the US president for delivering for American farmers and called the agreement an “America First victory."

Rollins shared a White House post stating that US President Donald Trump spoke to Indian Prime Minister Narendra Modi on Monday. During the conversation, Modi agreed to stop buying Russian oil and increase purchases from the US, potentially including Venezuela. Trump said this move “will help end the war in Ukraine."

The deal confirmed by both leaders will lower reciprocal tariffs on Indian goods from 25% to 18%. Trump said the agreement was “effective immediately" and added that it was agreed “out of friendship and respect for Prime Minister Modi."

Agricultural was a sticking point in trade talks

Earlier, agriculture and dairy were major sticking points in the bilateral trade talks. India had refused wider market access to protect its farmers from US competition.

The US had earlier pushed for opening India’s market to GM soya, corn, pulses, wheat and almonds. India had offered concessions in defence, energy and aviation instead.

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