US Slashes Tariffs on Indian Goods to 18%
Exporter Boost Comes Amid Skepticism Over Russian Oil Pledge
US Slashes Tariffs on Indian Goods to 18%. On February 2, 2026, President Donald Trump announced a major reduction in tariffs on Indian imports, cutting the rate from as high as 50% to 18% effective immediately. The previous structure included a 25% reciprocal tariff plus a 25% punitive duty imposed in August 2025 due to India’s continued purchases of Russian oil.
By – Dr. Namrata Mishra Tiwari, Chief Editor, http://indiainput.com
Trump said the decision followed a call with Prime Minister Narendra Modi and claimed India had agreed to stop Russian oil imports, switch to American and possibly Venezuelan supplies, make $500 billion in purchases of US goods, and eliminate its own tariffs and non-tariff barriers.
Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.
When two large economies and the…
— Narendra Modi (@narendramodi) February 2, 2026
Modi quickly responded on social media, welcoming the lower tariff: “Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India.” He praised cooperation between the two largest democracies but did not mention ending Russian oil imports, zero tariffs on US goods, or the $500 billion commitment.
“It was an Honor to speak with Prime Minister Modi, of India, this morning… He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine” – President Donald J. Trump 🇺🇸 pic.twitter.com/RD7PZ8S16z
— The White House (@WhiteHouse) February 2, 2026
Indian officials hailed the development as historic, giving exporters a competitive edge in the US market. US officials pointed to benefits for American farmers and energy producers. Critics, however, called the deal one-sided, noting that no joint statement or full agreement text has been released publicly.
Skepticism remains high. Recent shipping data shows Indian public sector refiners and private players, including Reliance, have already placed orders for Russian crude deliveries in February and March 2026. While overall volumes have dropped to two-year lows as India diversifies toward the Middle East, Brazil, and OPEC nations, a complete halt appears unlikely in the short term.
Modi’s long-standing protective tariff stance has earned him the informal title “Tariff King,” making full reciprocity to zero tariffs on American goods highly improbable. Online discussions continue to weigh the pros (better market access, potential energy diversification) against the cons (higher energy costs, risks to domestic industry).
A big day for Made in India!
Our products will now reach wider global markets, creating new possibilities for young entrepreneurs, farmers, and MSMEs.
This progress reflects the decisive leadership of Hon PM @narendramodi Ji, who has positioned India firmly on the global growth… https://t.co/DFiisJIibq
— Devendra Fadnavis (@Dev_Fadnavis) February 2, 2026
The announcement, issued primarily via Trump’s Truth Social post, highlights the challenge of treating social media statements as official policy without formal documentation. Implementation details, verification mechanisms, and timelines are still awaited. Both governments describe the move as a step toward deeper economic partnership.
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