India-US Trade Deal: Tariffs to Drop to 18%, Russian Oil Purchases in Focus

• US official Sergio Gor announced a reduction in tariffs on Indian goods from 50% to 18% following a February 2026 agreement.
• The US claims India has agreed to reduce or stop purchasing crude oil from Russia, a long-standing US demand.
• Previously, a 50% tariff, including a 25% punitive levy for Russian oil purchases, significantly impacted Indian exporters.
• The new 18% tariff structure aims to balance trade and make Indian companies more competitive in the US market.
• While the US has made claims, India has not yet issued a formal public statement regarding Russian oil purchases.

Why It Matters: India-US trade sees a major shift with tariff reduction and a potential change in Russian oil policy.