US and India Strike Landmark Trade Deal Cutting Tariffs Dramatically Boosting Exports and Economic Cooperation

In a major breakthrough for US-India trade relations, President Donald Trump and Prime Minister Narendra Modi announced on February 2, 2026, a deal slashing US tariffs on Indian goods from 50% to 18% effective immediately. According to PV Tech, this cuts the reciprocal tariff from 25% and eliminates an additional 25% levy tied to India's Russian oil imports, boosting Indian exports like solar panels and jewelry. Trump hailed the agreement on social media, stating India committed to halting Russian oil purchases, reducing its tariffs on US goods to zero, and buying over $500 billion in American products including energy, aircraft, and defense equipment. PV Tech reports Indian PM Modi confirmed the 18% rate on X, calling it a step toward stability, though he omitted details on oil or purchases. Sullivan & Cromwell's Tariffs Tracker notes the White House described it as immediate, following a leaders' call. The move de-escalates tensions from May 2025, when 25% tariffs hit all Indian imports from August, per Council on Foreign Relations. Indian exports to the US still grew 15.9% to $85.5 billion in January-November 2025, per government data cited by PV Tech. Clean energy wins big: Saatvik Green Energy CEO Prashant Mathur told PV Tech it's a "strategic turning point," enhancing competitiveness for Made-in-India solar cells and modules in the US market. Markets reacted positively, with Indian stocks surging, as Applied Geopolitics notes, amid India's new EU free trade pact. However, challenges linger: US antidumping probes into Indian PV cells propose 123% margins, per PV Tech, and details on timelines remain vague, with Asia Times calling it a framework needing fine print. Critics like Congress's Jairam Ramesh decry it as capitulation, while Moody's warns of oil market disruptions from curbing Russian crude, now down to 1.1 million barrels daily. This US-India tariff reset strengthens supply chains, counters China, and pivots energy geopolitics, positioning India competitively at 18% versus higher ASEAN rates, per Carnegie Endowment. Listeners, thank you for tuning in to India Tariff News and Tracker. Subscribe for the latest updates. This has been a Quiet Please production, for more check out quietplease.ai. For more check out https://www.quietperiodplease.com/ Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q This content was created in partnership and with the help of Artificial Intelligence AI.