India & US Strike long-delayed trade deal: Highlights
India & US Strike long-delayed trade deal: Highlights - US Cut Tariffs On Indian Import To 18% In a major diplomatic breakthrough on February 2–3, 2026, India and the United States officially sealed a long-delayed trade agreement. The deal, announced following a high-level phone call between Prime Minister Narendra Modi and President Donald Trump, marks a significant de-escalation of the trade tensions that had peaked in late 2025. US President Donald Trump's decision to lower reciprocal tariffs on India from 50% to 18% has been met with a sense of relief in Asia's third-largest economy Key Provisions of the Deal: The agreement is built on a "reciprocity" framework, addressing both tariff relief and massive purchase commitments: Tariff Reductions : The U.S. has reduced the reciprocal tariff on "Made in India" goods to 18%, down from the previous base of 25% (and an effective 50% when including prior penalties). Removal of Oil Penalties: Washington ...