February 3, 2026
India and the United States have agreed upon a new trade deal after a phone call between Indian Prime Minister Narendra Modi and US President Donald Trump. President Trump announced that the US will lower tariffs on Indian goods from 25 to 18 percent, while India would reduce its trade barriers to zero. He also stated that India has agreed to stop buying Russian oil, which would drop the additional 25 percent tariff penalty imposed on India. India has also committed to purchasing more than USD 500 billion worth of goods from the US, including petroleum, defence goods, and aircraft.