¨     US President Donald Trump claimed on February 2, 2026, that a trade agreement had been reached between the United States and India, under which tariffs would be reduced with immediate effect. This announcement followed direct talks with Indian Prime Minister Narendra Modi.

¨     According to Trump, under this agreement, the US "reciprocal tariffs" imposed on Indian goods have been reduced from 25% to 18%.
¨     This deal is expected to increase bilateral trade, bring about significant changes in the energy sector, and provide tariff relief, although some questions remain regarding its legal form and long-term implications.
What did Trump announce regarding the trade agreement?
¨     According to President Donald Trump, the US will reduce the "reciprocal tariffs" imposed on Indian goods to 18%, while India has agreed to move towards eliminating tariffs and non-tariff barriers on American products.
¨     Trump also stated that India would purchase significantly more products from the US, including energy, technology, agriculture, coal, and other goods worth over $500 billion. Trump made this announcement through his social media platform Truth Social and stated that it was effective immediately, although no official agreement document has yet been made public.
Energy and Geopolitics: The Russian Oil Aspect
¨     A significant geopolitical aspect of the announcement was Trump's claim that Prime Minister Narendra Modi had agreed to stop purchasing Russian oil and instead increase oil imports from the US and possibly Venezuela.
¨     According to Trump, this would help weaken Russia's capabilities in the Ukraine war. India's energy purchases have long been a sensitive issue in US-India relations, particularly after the US imposed higher tariffs last year based on India's continued imports of Russian oil.
India's Response and Official Confirmation
¨     Prime Minister Narendra Modi later confirmed the reduction in US tariffs in a post on X (formerly Twitter), calling it a positive step for "Make in India" products.
¨     He described the agreement as beneficial for both democracies and emphasized cooperation for global peace, stability, and prosperity.
¨     However, detailed commitments from Indian officials regarding the complete elimination of tariffs or changes to oil imports have not yet been released, leaving room for further negotiations.