Trump Announces New Trade Deal With India to Cut Tariffs and Shift Energy Purchases
President Donald Trump announced a trade deal with India to lower U.S. tariffs to 18 percent. India agreed to buy more U.S. energy and reduce Russian oil.
Insights:
President donald trump announced on Feb. 2, 2026, that the 
US has reached a bilateral trade agreement with 
IN that significantly alters tariff structures and energy procurement. According to a social media post from donald trump and statements from a White House official, the US will reduce its reciprocal tariff on Indian goods to 18 percent while rescinding a punitive 25 percent duty. This move effectively slashes the total duty from the 50 percent level imposed last August to the new 18 percent rate. donald trump specifically noted that the US will charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent.
US has reached a bilateral trade agreement with IN that significantly alters tariff structures and energy procurement. According to a social media post from donald trump and statements from a White House official, the US will reduce its reciprocal tariff on Indian goods to 18 percent while rescinding a punitive 25 percent duty. This move effectively slashes the total duty from the 50 percent level imposed last August to the new 18 percent rate. donald trump specifically noted that the US will charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent.
