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Trump, Modi Reach Long-Awaited U.S.-India Trade Deal

12 1
03.02.2026

Welcome back to World Brief, where we’re looking at India striking a trade deal with the United States, the reopening of Gaza’s Rafah border crossing, and a presidential election in Costa Rica.

The United States and India have struck a trade deal, U.S. President Donald Trump announced on Monday, ending a monthslong stalemate in bilateral trade talks even as foreign powers are trying to lessen their economic dependence on Washington.

Welcome back to World Brief, where we’re looking at India striking a trade deal with the United States, the reopening of Gaza’s Rafah border crossing, and a presidential election in Costa Rica.

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The United States and India have struck a trade deal, U.S. President Donald Trump announced on Monday, ending a monthslong stalemate in bilateral trade talks even as foreign powers are trying to lessen their economic dependence on Washington.

Effective immediately, the United States will reduce the total U.S. tariffs on India from 50 percent to 18 percent—eliminating the 25 percent duty imposed on New Delhi for its continued purchasing of Russian oil and reducing Trump’s 25 percent reciprocal tariff by 7 percentage points.

Indian Prime Minister Narendra Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump posted on Truth Social on Monday. “Our amazing relationship with India will be even stronger going forward.”

In exchange, India will cut its duties on U.S. goods to zero and will commit to “buy American” at a higher level, including by investing more than $500 billion in U.S. agriculture, coal, energy, and technology, among others. “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi posted on X.

Trade talks between the two countries stalled last year over India’s refusal to stop purchasing Russian crude. Even after the United........

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