Trump cuts India tariffs to 18% as Modi pledges to phase out Russian oil

President Trump announced a bilateral trade framework with India on February 2, 2026, reducing US tariffs on Indian goods from 25% to 18% in exchange for Prime Minister Modi's pledge to stop purchasing Russian oil and buy $500 billion in US energy, technology, and agricultural products. India faced an additional 25% tariff since August 2025 specifically to pressure a reduction in Russian oil purchases running at 1.2 million barrels per day in January. India also agreed to reduce its tariffs and non-tariff barriers against US goods to zero.