U.S. President Donald Trump announced on Monday (January 2, 2026) that he had reached a trade deal with India, which includes New Delhi’s agreement to halt purchases of Russian oil and increase its imports from the U.S., and potentially from Venezuela.
Also read: India-U.S. trade deal LIVE
In a post on Truth Social, Mr. Trump said India would reduce trade barriers to zero. An additional 25% tariff penalty imposed over India’s refusal to stop buying oil from Russia will be dropped.
India-U.S. deal: Five unanswered questions
“Delighted that Made in India products will now have a reduced tariff of 18%,” PM Modi said in a post on X thanking Mr. Trump. He added, “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”
