India–US Trade Deal Sealed After 12 Months of Tariff Hikes, Oil Disputes and Stalled Negotiations

Brief by Shorts91 Newsdesk / 08:08am on 03 Feb 2026,Tuesday India Global

After almost 12 months of strained negotiations marked by escalating tariffs, stalled discussions and disputes over energy sourcing, India and the United States reached a new trade agreement in early February 2026. Throughout 2025, talks were hampered by disputes over reciprocal duties and India’s purchase of Russian oil, with U.S. tariffs on Indian goods rising to 50% at one point amid diplomatic friction. Multiple negotiation rounds, phone calls between leaders and diplomatic engagement eventually led to a breakthrough, resulting in tariffs cut to 18% and renewed cooperation, signalling a thaw in ties after a year of setbacks. (PC: Reuters)

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