Current Affairs - International - Discussion

The United States and India announced a trade deal in February 2026 that included a significant reduction in tariffs. Under this agreement, the U.S. reciprocal tariff on Indian goods was reduced from 25 percent to 18 percent, with immediate effect. The announcement followed a direct conversation between U.S. President Donald Trump and Indian Prime Minister Narendra Modi. The deal also highlighted India’s commitment to increasing purchases of American goods, including energy, agriculture, and technology products. While the tariff reduction was welcomed by both sides, questions remain regarding the legal framework, formal documentation, and long-term implications of the agreement.