Trump Announces Trade Deal with India: End of Russian Oil Imports, Tariff Cuts

US President Donald Trump announced today (02/02/2026) a new ‘trade agreement’ with India, effective immediately, reducing tariffs on Indian imports from 25% to 18%. During a phone call with Prime Minister Narendra Modi, Trump stated that India agreed to halt purchases of Russian oil and instead increase imports of US crude—and potentially Venezuelan oil. In return, India will eliminate tariffs and regulatory barriers and commit to purchasing over $500 billion in US goods, including agricultural, technology, and energy products. Washington has already taken control of Venezuela’s oil production and sales following the military intervention that led to the arrest of former President Nicolás Maduro. Since April last year, Trump imposed 25% ‘reciprocal’ tariffs on all Indian goods; an additional 25% was added in August due to India’s continued Russian oil imports. This latest deal ends those extra duties. Modi expressed being ‘extremely pleased’, thanking Trump on behalf of 1.4 billion Indians and praising the leadership as vital for global peace and prosperity. Indian stocks listed on Wall Street rose sharply: Infosys (+3.53%), Wipro (+7%), HDFC Bank (+3.4%), and iShares MSCI India (+3.3%). Venezuelan oil could partially replace Russian supplies, crucial for India—whose oil imports meet nearly 90% of its demand.