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February 10, 2026 February 10, 2026 - Current affairs for all the Exams: U.S. to Lower Tariffs on Indian Goods as New Delhi Agrees to Halt Russian Oil Imports

U.S. President Donald Trump has announced a major trade agreement with India, pledging to reduce tariffs on Indian goods from 25% to 18% after Prime Minister Narendra Modi agreed to stop purchasing Russian oil and significantly increase imports of American products.

In a significant shift in global trade and energy dynamics, U.S. President Donald Trump announced on Monday, February 9, 2026, that the United States plans to lower tariffs on Indian goods to 18%, down from the previous 25%. This decision follows a high-stakes agreement with Indian Prime Minister Narendra Modi, who has committed to halting India's procurement of Russian crude oil.

The deal aims to further isolate Moscow economically following the 2022 invasion of Ukraine. Since the onset of the conflict, India had become one of the largest buyers of discounted Russian oil, a move that had frequently complicated its relationship with Washington. President Trump stated on social media that this agreement will "help END THE WAR in Ukraine" by cutting off a vital revenue stream for the Russian government.

Key Highlights of the Agreement:

  • Tariff Reduction: U.S. import duties on Indian products will drop to 18%.

  • Energy Shift: India will cease all purchases of Russian oil, transitioning its energy needs toward other global suppliers, including the United States.

  • Market Access: India has agreed to reduce its import taxes on U.S. goods to zero and has pledged to purchase $500 billion worth of American products over an unspecified period.

  • Geopolitical Impact: The move is seen as a strategic victory for the Trump administration’s "America First" economic policy while strengthening the U.S.-India Comprehensive Global Strategic Partnership.

Prime Minister Modi expressed his optimism regarding the deal, stating that Trump's leadership is "vital for global peace, stability, and prosperity." The announcement comes just days after India and the European Union reached a separate free trade agreement, signaling a major realignment of India's economic strategy toward Western markets.

For students of competitive exams, this event is a crucial case study in International Relations and Global Macroeconomics, highlighting how trade tariffs are being used as leverage in modern diplomacy to achieve foreign policy objectives.

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