India-US trade deal slashes tariffs, lifts exports and markets

US President Donald Trump speaks during an announcement on "Project Vault” in the Oval Office of the White House in Washington, DC, US, on Monday, Feb. 2, 2026. Trump formally announced plans to launch a $12 billion critical minerals stockpile, in his latest effort to aid manufacturers while minimizing reliance on Chinese rare earths. Photographer: Bonnie Cash/UPI/Bloomberg

NEW DELHI: U.S. President Donald Trump on Monday announced a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.

Trump said the deal involved higher Indian purchases of U.S. energy, coal, technology and farm products, and is the first phase of a broader pact to be negotiated later.