Trump and Modi Strike Major Trade Deal: US to Slash Tariffs as India Pivots Away from Russian Oil
By Diyatha News New Zealand World Desk
WASHINGTON D.C. / NEW DELHI (Tuesday, February 3, 2026) — In a landmark move that signals a tectonic shift in global geopolitics and trade, U.S. President Donald Trump has announced a comprehensive trade agreement with Indian Prime Minister Narendra Modi.
The deal, revealed via social media today, promises to significantly lower trade barriers between the two superpowers while aligning India’s energy policy more closely with Western interests.
📉 Tariff Cuts: From 25% down to 18%
The cornerstone of the agreement is a substantial reduction in U.S. import duties on Indian goods.
- The Cut: The United States will reduce tariffs on Indian exports from the current 25% to 18%.
- The Impact: This move is expected to provide a massive boost to Indian manufacturing, particularly in the textile, pharmaceutical, and technology sectors, making Indian products far more competitive in the American market.
🛢️ The Russia Clause: A Strategic Energy Pivot
In exchange for the tariff concessions, President Trump stated that India has agreed to dismantle existing trade barriers and, crucially, halt its purchase of Russian oil.
“India is bringing trade barriers down to zero and will stop buying Russian oil,” Trump posted. “A great deal for American workers and a huge step for global security.”
Since the onset of the Ukraine conflict, India has been a major buyer of discounted Russian crude. This agreement marks a major victory for the Trump administration’s efforts to further isolate the Russian economy.
🤝 Modi Responds: “A New Era of Cooperation”
Prime Minister Modi echoed the President’s enthusiasm, posting his own update following the negotiations. He expressed his deep satisfaction with the deal, calling it a vital step toward strengthening the “special relationship” between the world’s two largest democracies.
Industry experts suggest the deal will likely see India increase its imports of American liquefied natural gas (LNG) and agricultural products to compensate for the loss of Russian energy supplies.
