India-US Seal Landmark Trade Deal: Tariffs Cut to 18% After Years of Tensions

• India and the US finalized a trade agreement, reducing tariffs on Indian imports from 50% to 18%.
• The deal follows months of negotiations, tariff clashes, and diplomatic efforts between the two nations.
• The groundwork was laid during PM Modi's February 2025 visit to Washington, aiming for $500 billion bilateral trade by 2030.
• Tensions rose in 2025 with US tariffs on Indian goods, particularly over India's Russian oil purchases.
• The agreement, announced in February 2026, also includes India's commitment to increase US energy purchases and reduce Russian oil imports.

Why It Matters: India and the US have resolved tariff disputes, sealing a trade deal that significantly reduces import duties.