Trump secures $500 billion trade pact as India pivots from Russian energy
President Donald Trump announced on February 2, 2026, that the United States has finalized a landmark trade agreement with India. The deal marks a seismic shift in global energy politics, with New Delhi reportedly committing to halt Russian oil imports.
According to President Trump, India will replace Russian supplies by increasing purchases of American energy and potentially sourcing oil from Venezuela. The Venezuelan oil sector recently transitioned under U.S. influence following the events of January 3.
Tariff reductions and economic targets
The agreement provides immediate fiscal relief for Indian exporters, reducing U.S. import tariffs from 25% to 18%. This follows a period of heightened tensions where Washington had imposed additional levies due to India’s continued reliance on Russian energy.
President Trump stated on Truth Social that Prime Minister Narendra Modi agreed to work toward "zero tariffs" on U.S. goods. India has pledged to purchase over $500 billion (approx. €463 billion) in American agricultural, energy, and technology products.
Strategic nuances and diplomatic silence
While Prime Minister Modi hailed the agreement as a "wonderful announcement," he remained strategically silent regarding the specific cessation of Russian oil imports. In a post on X, Modi focused on the benefits for India’s 1.4 billion citizens and the 18% tariff reduction.
"When the world's two largest democracies collaborate, our people benefit," Modi stated. He praised President Trump’s leadership as "essential for global peace," though he did not explicitly confirm the trade policy shift regarding Moscow.
Energy realignment
The deal effectively removes the 25% "penalty tariff" previously imposed by Washington on Indian goods. By shifting its energy appetite toward the U.S. and Venezuela, India aims to stabilize its economy while aligning with the new Western-led energy order.
Translation by Iurie Tataru
