PM Narendra Modi & President Donald Trump have officially announced the India-US trade deal 2026.
The India-US trade deal 2026 finalised in the 1st week of Feb 2026, has officially reset India’s energy diplomacy. By pledging to pivot away from Russian crude oil, New Delhi secured a massive reduction in U.S. “reciprocal tariffs,” which plummeted from a punitive 50% down to just 18%. While the White House claims a $500 billion energy purchase agreement, the 2026 India-US trade deal primarily offers Indian refiners a “security cushion,” allowing them to swap discounted Ural barrels for American Brent-linked crude without facing secondary sanctions or export hurdles.
- Tariff Cut: 50% total levy (reciprocal + oil penalty) slashed to 18% effective immediately.
- The Pivot: India to increase US and Venezuelan imports to replace falling Russian volumes.
- Export Edge: Textile and leather sectors now face lower duties than rivals in Vietnam and Bangladesh.
- Strategic Intent: The India-US trade deal 2026 signals a “westward shift” to protect 2026-27 GDP targets.
👉 Why this matters: India is no longer choosing between “cheap oil” and “market access”; it’s leveraging both to become the world’s safest manufacturing hub.
Also you should know about : Budget 2026: The “Trump Tariff Shield” for Indian Exporters
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Written and summarized by our editorial team using human review & a bit of AI assistance. Edited & Approved by Debraj Paul, Founder of ArticoliNews Media-Tech