India and America Trade Deal: The Quick Story
Summary
The Big News
On February 2, 2026, America and India made a huge trade deal. America said: we will charge you less money when you sell things to us. India said: okay, we will buy more American products and stop buying Russian oil.
Before this deal, America charged 50% tax on Indian products. Now it charges only 18%. Think of it like this: you are selling a shirt for $100. Before, America takes $50 in tax. Now America takes only $18 in tax. That is much better for India.
Who Wins?
India wins because Indian companies can sell more things to America without paying big taxes. About $6 to $7 billion extra per year comes to India from lower taxes.
America wins because India says it will buy $500 billion of American oil, coal, technology, and farm things by 2030.
That means American workers get more jobs.
America also wins because India will stop buying Russian oil. Russia loses about $2 billion per year from this. Russia needs this money to fight the war in Ukraine.
What is the Bad News?
India has to buy expensive oil from Venezuela instead of cheap oil from Russia.
Venezuelan oil costs about $7 to $10 more per barrel. For every barrel of Venezuelan oil, India pays more money. This costs India about $1.3 to $1.6 billion extra per year.
So India gets $6 billion from tariffs but loses $1.3 billion on oil.
The real gain for India is about $4.4 to $5.7 billion per year.
Also, India has to make its tariffs zero on American goods. This means American companies can sell things cheaper in India and might hurt Indian businesses.
What About H1B Visas?
Bad news for Indian workers. America is charging $100,000 extra for new H1B visas.
Most H1B visas go to Indian people who want to work in America. Now it costs 100,000 dollars extra per person.
If a company wants to hire 10 Indian workers, it costs 1 million dollars more. Many companies will not hire Indian workers because it is too expensive. Trump says he will not remove this fee.
What About the Supreme Court?
The Supreme Court might say Trump cannot charge these tariffs. If the Supreme Court says no, Trump will charge 10% tariffs instead, using a different law. So even if the court says no, India still pays taxes on its products.
Either 18% or 10%, but not zero.
What Does This Mean?
For India: India saves money from lower tariffs, but pays more for oil. Indian workers cannot easily go to America to work because of the high H1B fee. India is also making deals with Europe and Russia, so India is not choosing only America.
For America: America gets India to not buy Russian oil, which helps Ukraine. America gets India to buy lots of American products. America still makes money from tariffs. But India is still friendly with Russia and China, so America does not control India completely.
Is This a Good Deal?
For India
Yes, it is good, but not perfect.
India makes more money from tariffs, but loses money on oil. The $100,000 H1B fee is very bad for Indian workers.
For America
Yes, it is good. America hurts Russia, makes India buy American things, and still charges tariffs.
Both countries got something good, but they had to give up something too. That is normal with trade deals.


