Chicago – February 03, 2026
US President Donald Trump’s decision to lower reciprocal tariffs on Indian imports from previously high punitive levels to 18% has brought a wave of relief across India’s economy, even as key details of the deal remain unclear.
The tariff rollback follows months of intense trade friction between Washington and New Delhi. Last year, the US had sharply increased duties on Indian goods at times amounting to tariffs as steep as 50% including a heavy penalty linked to India’s purchases of Russian oil.
Trump announced the tariff reduction after a phone call with Indian Prime Minister Narendra Modi, claiming that Modi agreed to stop buying Russian oil and diversify energy purchases to include more from the United States and potentially Venezuela. India has not officially confirmed those specific commitments.
Modi expressed gratitude for the tariff cut, saying on social media that he thanked Trump “on behalf of the 1.4 billion people of India” for the announcement and expressing hopes of elevating the US-India relationship to “unprecedented heights.”
