US-India trade deal: Tariffs on Indian goods drop to 18%

India Feb 03, 2026

Big news: The US and India just struck a major trade deal.
Starting now, tariffs on Indian goods going to the US drop from 25% to 18%, and the extra 25% penalty for buying Russian oil has been lifted, following US statements that Modi agreed to stop buying Russian oil.

President Trump's statement

President Trump said India would scrap tariffs on US products and buy over $500 billion in American energy, tech, and farm goods.
This means Indian exporters get better access to the US than competitors like China or Vietnam.
Plus, shifting away from Russian oil shows support for Ukraine and brings the two countries closer together.
Officials are calling it a win-win for both sides.