(WASHINGTON,February 2,2026) – The U.S. will lower tariffs on Indian imports after India agreed to stop purchasing Russian oil, according to statements from both governments.
The U.S. and India reached a trade agreement that includes reduced tariffs and a commitment from India to curtail its reliance on Russian energy sources.
- The U.S. will reduce tariffs on Indian goods as part of a trade deal.
- India has agreed to cease purchases of Russian oil.
- Former president Trump announced the agreement,citing benefits for both countries.
Trade Agreement Details
Former President Donald Trump announced the agreement, stating that the U.S. and India had reached a trade deal that would immediately lower tariffs, according to CNBC. Reuters reported that the U.S. cut tariffs on India to 18%.The BBC reported that the U.S. agreed to drop tariffs after India stopped purchasing Russian oil.
Did you know? – India was one of the largest importers of discounted Russian oil following the 2022 invasion of Ukraine. This purchase allowed Russia to continue funding its war efforts.
India’s Oil Purchases
The agreement centers on India’s decision to halt its purchases of Russian oil. CNN reported that Modi agreed to stop buying Russian oil, prompting the tariff reductions. The Times of India noted that the deal secures a favorable tariff rate for India, positioning it better than Pakistan and China in trade with the U.S.
Pro tip – Lower tariffs generally translate to lower prices for consumers and increased profits for businesses involved in importing and exporting goods.
Why It Matters
this agreement represents a shift in India’s energy sourcing and a strengthening of trade ties with the United States. By reducing its dependence on Russian oil, India aligns itself more closely with Western economic interests. The lowered tariffs are expected to boost trade between the two nations, benefiting businesses and consumers in both countries.
“This is a great deal for both countries,” said former President Trump, as reported by CNBC.
Reader question – How will this agreement impact global oil markets and Russia’s revenue streams? What are your thoughts?
Time.news based this report in part on reporting by BBC, CNN, CNBC, Reuters, and The Times of India and added independent analysis and context.
