India-US Trade Row Ends: Tariffs Cut to 18% After Landmark Deal

• India and the US have reached a landmark trade agreement, ending a year-long tariff dispute.
• US President Donald Trump announced an immediate reduction in reciprocal tariffs on Indian exports from 25% to 18%.
• The deal, confirmed on February 2, 2026, followed a phone call between Trump and Prime Minister Narendra Modi.
• India committed to significantly increase purchases of US energy, technology, and agricultural products.
• The agreement signals a reset in bilateral trade relations and provides immediate relief to Indian exporters.

Why It Matters: India and the US resolved their trade dispute, with tariffs on Indian exports reduced to 18%.