Washington, February 3, 2026 — U.S. President Donald Trump has announced a new trade agreement with India under which American tariffs on Indian goods will be reduced from 50% to 18%. In return, India has agreed to stop purchasing oil from Russia and increase imports of energy and other products from the United States.
President Trump disclosed the decision in a post on social media on Monday, following a phone conversation with Indian Prime Minister Narendra Modi, according to a report by Reuters. Trump said India would begin buying oil from the United States and could also source energy from Venezuela if necessary.
The U.S. president further claimed that Prime Minister Modi committed to purchasing more than $500 billion worth of American products, including oil, coal, technology, agricultural goods, and other items. Trump also said India agreed to gradually eliminate all tariff and non-tariff barriers on U.S. goods.
A White House official told Reuters that the United States is withdrawing an additional 25% punitive tariff imposed on India over its purchase of Russian oil, significantly reducing India’s overall tariff burden.
Prime Minister Modi, in a post on X, said he was “delighted” after speaking with President Trump and welcomed the reduction of tariffs on “Made in India” products to 18%. He thanked Trump on behalf of India’s 1.4 billion people.
India’s Commerce Minister Piyush Goyal said the agreement would bring the two economies closer and create new opportunities for farmers, small businesses, and skilled workers.
However, several key details remain unclear. There is no official documentation outlining when the new tariffs will take effect, when India will halt Russian oil imports, or which specific trade barriers will be removed. As of Monday afternoon, the White House, the Indian government, and the Russian embassy had not issued formal statements on the matter.
