2 Feb 2026

US–India trade agreement: tariffs cut to 18%

UPSC
Banking
International Relations

Summary

The United States agreed to lower tariffs on Indian exports to 18% in exchange for India limiting purchases of Russian crude oil. The pact resolves a multi-year tariff stand-off.

Why it matters

Geopolitical and trade-policy implications. UPSC International Relations and Economy. Note the linkage between trade and energy policy — a recurring theme in mains answers.

US–India trade agreement: tariffs cut to 18% · PrepAtlas