Business & Economics

Trump Unilaterally Unveils India-US Tariff-Cut Deal, Triggering Parliamentary Furor in New Delhi

On 3 Feb 2026, U.S. President Donald Trump declared that U.S. tariffs on Indian goods would drop immediately from 25-50 % to 18 % after a phone call with PM Modi, a move announced in Washington before any statement in the Indian Parliament.

By Tomás Rydell

Focusing Facts

  1. The Lok Sabha was suspended for one hour on 3 Feb 2026 as Congress MPs demanded the full text of the deal and filed an adjournment motion.
  2. Trump’s post said India would halt purchases of Russian oil and buy up to US $500 bn in U.S. energy, farm and industrial goods while cutting its own tariff and non-tariff barriers to “zero.”
  3. U.S. Secretary of Agriculture Brooke Rollins claimed the pact will trim a US $1.3 bn American agricultural trade deficit with India by expanding farm exports.

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Perspectives in this article

  • Pro-business and government-friendly Indian media
  • Opposition-aligned and critical outlets amplifying Congress leaders
  • U.S.–centric or international business coverage
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