US agrees to cut tariffs on Indian goods
Big news for trade: After a phone call between President Trump and PM Modi, the US has agreed to cut tariffs on Indian goods from 25% down to 18% (Trump's wording; some reports describe a prior combined total of 50%).
This covers key exports like engineering goods, textiles, chemicals, and auto parts—basically over half of what India sells to the US.
In return, Trump said India would buy more than $500 billion in US energy, tech, agriculture products, and coal.
Deal brings relief to both nations
This deal cools off tensions that started in recent months (leading up to the Feb. 2, 2026 agreement) when the US hiked tariffs and threatened India's manufacturing sector.
With this agreement, India gets tariff relief (and maybe access to Venezuelan oil), while Trump said the US would score major sales in energy and other sectors.
It's a win for both sides—and could mean smoother relations going forward.