Feb 2, 2026 | The Eastern Times | 2-Min Read
In a major breakthrough, Donald Trump has announced a new trade agreement with India following a high-level call with Narendra Modi.
The deal comes after months of trade tensions that pushed tariffs on Indian goods entering the United States to record levels.
Big Highlights (Quick Read)
Tariffs Cut:
The United States will reduce tariffs on Indian goods from 25% to 18% with immediate effect.Zero-Tariff Goal:
India has agreed to gradually move toward zero tariffs and remove non-tariff barriers for American products.$500 Billion Commitment:
India will expand purchases of US energy, technology, and agricultural goods, with total transactions expected to cross $500 billion.
Major Energy Shift
The agreement also includes a significant change in India’s energy policy.
Exit from Russian Oil:
India will stop importing crude oil from Russia.New Supply Sources:
India will increase energy imports from the United States and may also explore supplies from Venezuela.
US officials say this move could reduce Russia’s financial strength amid the ongoing war in Ukraine.
Why This Matters
IT and Technology:
Lower tariffs are expected to improve profit margins for Indian tech companies operating in the US.Energy:
Diversified sourcing could help stabilise long-term fuel supply.Manufacturing:
Reduced trade barriers may lower costs for US components used in Indian factories.
What Trump Said
Reacting to the agreement, President Trump said he and Prime Minister Modi are leaders who “get things done,” underlining closer economic cooperation between the two nations.
Bottom Line
The new trade deal eases months of economic friction, strengthens US–India relations, and signals a strategic shift in global trade and energy ties.
— The Eastern Times
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