February 3, 2026
Trump cuts India tariffs to 18% in exchange for ending Russian oil purchases
US tariffs on India drop from 50% to 18%; India stops Russian oil purchases
Trump-Modi trade deal announced February 2, 2026 with Trump posting on Truth Social that tariffs on Indian goods would drop from 50% to 18%. The agreement included major concessions from India, including reduced tariffs on American farm products and increased market access for U.S. agricultural producers.
India agreed to stop buying Russian oil and purchase $500 billion+ in U.S. semiconductor manufacturing. The energy policy shift represented a significant geopolitical realignment, with India moving away from traditional Russian energy partnerships toward U.S. technology cooperation.
USTR Jamieson Greer confirmed India would cut tariffs on agricultural and industrial goods to zero, while the U.S. would maintain an 18% reciprocal tariff. Greer said on CNBC that the deal was finalized and India had agreed to reduce tariffs on medical devices, chemicals, and manufactured goods.
Deal includes dispute-resolution modeled on USMCA and enhanced IP protections. The agreement established mechanisms for resolving trade disputes and strengthened intellectual property protections for U.S. companies operating in India and Indian companies in the U.S.
The deal uses presidential trade authority, bypassing Congress. While some lawmakers may weigh in, the tariff changes took effect immediately as an executive agreement, not a treaty requiring Senate ratification.
The agreement came amid broader U.S. efforts to counter Chinese influence in the Indo-Pacific region. The India partnership represented a strategic counterbalance to China economic dominance in Asia and strengthened U.S. alliances in the region.
Semiconductor investment included technology transfer and joint research partnerships. The $500 billion commitment would establish India as a major chip manufacturing hub and create thousands of high-tech jobs in both countries.
The trade deal faced some opposition from labor and environmental groups. Critics argued the agreement did not adequately address worker rights or environmental standards, though supporters emphasized the strategic and economic benefits of the partnership.
People, bills, and sources
Donald Trump
President
Narendra Modi
Prime Minister of India
Jamieson Greer
U.S. Trade Representative
Piyush Goyal
Indian Commerce Minister
Senate Finance Committee
Congressional committee
What you can do
1
civic action
Support fair trade organizations advocating for worker protections
Donate to or volunteer with organizations that advocate for fair trade policies protecting workers rights and environmental standards. These groups work to ensure trade agreements benefit all stakeholders, not just corporations and governments.
info@citizenstrade.org
My name is [Name] and I am calling to support the Citizens Trade Campaign work advocating for fair trade policies. With the Trump-Modi trade deal, I want to ensure worker protections and environmental standards are included in trade agreements.
2
civic action
Contact your representatives about fair trade and worker protections
Urge your representatives to support ratification of trade agreements that include strong worker protections and environmental standards. Ask them to advocate for policies that benefit all stakeholders, not just corporations and governments.
find your representative at congress.gov
My name is [Name] and I am calling about the Trump-Modi trade deal. I urge the representative to support ratification with strong worker protections and environmental standards to ensure trade benefits all stakeholders.
3
understanding
Learn about fair trade and international labor standards
Study fair trade principles and international labor standards to understand how trade agreements can protect workers and the environment. Understanding these issues helps you advocate for more equitable and sustainable trade policies.
info@fairtradefederation.org
I am calling to learn about fair trade and international labor standards. With the Trump-Modi trade deal, I want to understand how trade agreements can protect workers and the environment while promoting economic growth.