US President Donald Trump announced a major trade deal with India that lowers U.S. tariffs on Indian goods from as high as 50% to 18%, in exchange for India halting Russian oil purchases and boosting imports of US products, days after New Delhi signed a separate trade pact with the EU.
US President Donald Trump announced in a Truth Social post on 2 February 2026 that a major trade deal had been reached with India.
Under the agreement, the US will sharply reduce tariffs on Indian goods. The overall duty on Indian imports, which had climbed to 50% because of punitive measures linked to India’s oil purchases, will now be set at 18%.
“We agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and non-tariff barriers against the United States to ZERO. The Prime Minister also committed to “BUY AMERICAN” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward,” Trump posted on Truth Social.
In return for lower US tariffs, Trump said India agreed to halt purchases of Russian oil and ramp up energy imports from the US and potentially Venezuela. Washington also plans to rescind the additional 25% duty levied on Indian goods specifically tied to Russian oil purchases.
Trump presented the deal as part of a wider strategic partnership. He said India would significantly increase purchases of US goods, including energy, technology, and agricultural products, with total imports potentially surpassing USD 500 billion.
Trump also noted that India had committed to gradually eliminating both tariff and non-tariff barriers on US exports, ultimately bringing them down to zero.
This trade deal comes just days after India signed a separate free‑trade agreement with the European Union on 27 January 2026, aimed at cutting tariffs on most traded goods.
