From Pressure To Partnership: How India Secured A Major Trade Victory Over The US

Washington: India and America have surprised everyone by suddenly announcing a big trade agreement. US President Donald Trump said that the US tariff on Indian products has been reduced to 18 percent. Earlier this rate was very high, due to which Indian exports became expensive. Now with this reduction, Indian goods will become more competitive in the American market.

Why is this being considered a big victory for India?

Experts believe that this agreement is a major success for India both diplomatically and economically. Due to this, India has got better tariff rates compared to Vietnam, Bangladesh and other Asian countries. Lower duty means that Indian companies will be able to sell more goods in America and exports will increase.

Who praised Modi government?

American author and journalist Sadanand Dhume wrote on social media that removing punitive US tariffs and getting better rates from competing countries is a major diplomatic and economic victory for the Modi government. He also described it as a strong start to the tenure of the new US Ambassador to India Sergio Gor.

Credit where credit is due: Negotiating an end to punitive U.S. tariffs, and ending up with a better rate than competitors such as Vietnam and Bangladesh, is a major diplomatic/economic win for the Modi government. Also a great start to @USAmbIndia Sergio Gor’s tenure in India. https://t.co/FeAVRkkm6P

— Sadanand Dhume (@dhume) February 2, 2026

How was the pressure created on America?

Experts say that the recent free-trade deal between India and the European Union increased the pressure on America. Washington feared that if India became closer to Europe, America might be left behind. Apart from this, America wanted to reduce the risk due to Iran and other global tensions. In such an environment, India negotiated at the right time and finalized the deal in its favor.

Is the condition of stopping oil purchases from Russia also included?

President Trump claimed that India has assured him it will reduce or stop oil purchases from Russia. However, American analyst Michael Kugelman does not completely agree with this claim. He says that India has definitely reduced imports, but there is doubt about stopping them completely.

I highly doubt Modi “agreed to stop buying” Russian oil, as Trump claimed. India has, however, reduced its Russian oil imports since the new US Russia sanctions were instituted in November. That, along w/Amb Gor’s push for a deal, likely helped get them to the finish line.

— Michael Kugelman (@MichaelKugelman) February 2, 2026

What did Trump say about this agreement?

Trump wrote on his social media platform that due to the request and friendship of Prime Minister Narendra Modi, a trade agreement has been signed immediately between the two countries. He said the tariff is being reduced from 25 to 18 percent and this will further strengthen India-US relations.