What really happened, who benefits, what remains unclear, and how different media outlets framed the same story
Published: February 4, 2026 | Reading Time: 12 minutes | By The Balanced News
TL;DR: The Key Takeaways
- Tariff reduction: US slashed tariffs on Indian goods from 50% to 18% (effective immediately)
- Russian oil controversy: Trump claims India agreed to stop buying Russian oil; India hasn't confirmed this; Russia says it heard nothing
- $500 billion commitment: India reportedly committed to buying US energy, technology, agricultural, and other products
- Agriculture protected?: Government claims sensitive sectors excluded; US Agriculture Secretary celebrates "America First victory"
- Media spin: Left media calls it "surrender"; Right media hails it as "historic win"
Table of Contents
- What Actually Happened: The Deal Breakdown
- The Tariff Math: From 50% to 18%
- The Russian Oil Elephant in the Room
- Agriculture: Protected or Exposed?
- Winners and Losers
- The Media Spin: How Left vs Right Covered the Same Deal
- Five Unanswered Questions
- What Happens Next
1. What Actually Happened: The Deal Breakdown
On February 2, 2026, US President Donald Trump announced on Truth Social that following a phone call with Prime Minister Narendra Modi, the two countries had agreed to a trade deal. The announcement came just days before a crucial deadline that had raised fears of a full trade war.
The Key Points According to Trump:
- US reduces "reciprocal tariffs" from 25% to 18%
- The additional 25% "penalty tariff" (for Russian oil purchases) is removed
- India will reduce its tariffs on US goods "to ZERO"
- India agreed to stop buying Russian oil
- India committed to buying $500 billion worth of US products (energy, technology, agriculture, coal)
The Key Points According to Modi:
PM Modi's response was notably more measured. He wrote on X: "Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India."
What's missing from Modi's statement? Any mention of: - Stopping Russian oil purchases - Reducing Indian tariffs to zero - The $500 billion commitment
This gap between what Trump announced and what India confirmed is where the real story lies.
2. The Tariff Math: From 50% to 18%
Understanding the tariff structure is crucial to evaluating this deal.
Before the Deal (Tariffs on Indian goods entering US):
| Tariff Type | Rate | Total |
|---|---|---|
| Baseline duty | 10% | - |
| "Reciprocal" tariff | 25% | - |
| Russian oil penalty | 25% | - |
| Total effective tariff | - | ~50% |
After the Deal:
| Tariff Type | Rate | Total |
|---|---|---|
| New reciprocal tariff | 18% | - |
| Russian oil penalty | 0% (removed) | - |
| Total effective tariff | - | 18% |
How This Compares to Other Countries:
| Country | US Tariff Rate |
|---|---|
| Vietnam | 20% |
| Bangladesh | 20% |
| Indonesia | 19% |
| India (new) | 18% |
| Thailand | 15% |
| Southeast Asian avg | ~19% |
India is now positioned better than Bangladesh and Vietnam but slightly higher than Thailand. This matters because India has been positioning itself as an alternative manufacturing hub to China.
3. The Russian Oil Elephant in the Room
This is where the story gets complicated—and where media coverage diverged the most.
Trump's Claim:
"He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine."
India's Response:
The Ministry of External Affairs issued a carefully worded statement: "It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. This includes broad-basing our energy sourcing and diversifying as appropriate to meet market conditions."
Translation? India didn't confirm Trump's claim.
Russia's Response:
Kremlin spokesman Dmitry Peskov: "So far, we haven't heard any statements from New Delhi on this matter... We intend to continue to develop our bilateral relations with Delhi."
The Numbers That Matter:
- 36%: Share of Russia in India's crude oil imports in 2024
- 1.8 million barrels/day: Approximate Russian oil imports by India
- 0.2%: Russia's share of India's oil imports before 2022 (pre-Ukraine war)
- $80-90 billion: India's total exports to the US
India became the world's largest buyer of discounted Russian crude after Western sanctions in 2022. Replacing 1.8 million barrels per day isn't a simple switch—it involves different crude qualities, refinery configurations, and economics.
The Expert View:
"I don't think India can stop buying Russian oil overnight. The volumes are simply too large. Beyond the sheer quantity, differences in crude quality and refinery yields make substitution far from a one-for-one swap." — Vandana Hari, Vanda Insights
4. Agriculture: Protected or Exposed?
This is where the messaging got truly contradictory—on the same day.
What Commerce Minister Piyush Goyal Said:
"PM Modi has always protected the agriculture and dairy sectors and has never compromised on their interests. In the US trade deal as well, India's sensitive sectors of agriculture and dairy have been excluded."
What US Agriculture Secretary Brooke Rollins Posted:
"Thank you President for once again delivering for our American farmers. New US-India deal will export more American farm products to India's massive market, lifting prices and pumping cash into rural America."
Someone isn't telling the full story.
The Background:
- US agricultural trade deficit with India: $1.3 billion in 2024
- US exports to India already surging: $2.85 billion (Jan-Nov 2025), up 34.1% YoY
- Key US asks: Access for corn, ethanol, soybean, dairy products (from cows fed on animal-based formulations—currently restricted in India)
The Concerns:
- GM crops: Will India allow genetically modified produce?
- Dairy standards: US dairy comes from cows fed on blood meal, tissue, and bovine-based ingredients—against Indian regulations
- Subsidy competition: US agricultural products are heavily subsidized; can Indian farmers compete?
Kerala CM Pinarayi Vijayan raised "serious concerns" about the deal. Samyukt Kisan Morcha called it "surrender to US imperialism."
5. Winners and Losers
Clear Winners:
1. Indian Exporters (Textiles, Pharma, Gems) - Textile sector was facing 50% tariffs; now at 18% - Marine exporters get relief - Gems and jewellery, leather, footwear, plastics benefit
2. Stock Market - Sensex rallied on the news - Export-oriented stocks jumped
3. US Energy Sector - If India does shift purchases, US oil and LNG exporters gain massively
4. Diplomatic Relations - Both leaders can claim a "win" - Avoids a full-blown trade war
Potential Losers:
1. Indian Farmers (Potentially) - If agriculture opens up more than announced, subsidized US products could flood markets - Dairy sector particularly vulnerable
2. Russia - Loses its largest oil customer if India follows through - Strategic partnership with India could weaken
3. Indian Oil Companies - Russian oil was discounted; US oil is market-priced - Higher import costs possible
Uncertain Outcomes:
1. Manufacturing Hub Dreams - 18% is better than 50% but still not zero - China alternatives like Vietnam (20%) are comparable
2. Long-term Trade Balance - India buying $500 billion in US goods = massive outflow - Does Indian export growth match this?
6. The Media Spin: How Left vs Right Covered It
This is where The Balanced News analysis becomes essential. Here's how different outlets framed the same deal:
Right-Leaning Media (Republic, Times Now, Zee News):
Framing: Historic diplomatic victory, Modi's masterstroke
Headlines: - "India Seals US Trade Deal: Trump-Modi Trade Agreement Cuts Tariffs Into More Than Half" - "PM Modi's Strong Leadership Gets India Best Deal Among Competitors"
Emphasis: - Tariff reduction from 50% to 18% - Comparison with neighbors (India got better deal than Bangladesh, Vietnam) - Protection of agriculture and dairy sectors - Strengthening of India-US strategic ties
Omissions: - Skepticism about Russian oil claims - Agricultural concerns from farmer groups - Details on what India conceded
Left-Leaning Media (The Wire, NDTV, The Hindu):
Framing: Modi capitulated under pressure; deal raises concerns
Headlines: - "Congress Slams Government: PM Completely Surrendered to Appease Trump" - "India-US Trade Deal: Five Unanswered Questions"
Emphasis: - Rahul Gandhi's criticism: "Modi will meekly bow to Trump" - Farmer concerns and agricultural vulnerability - Contradiction between Trump's and Modi's statements - Russia's reaction and diplomatic implications
Omissions: - Benefits to exporters - Comparative advantage vs other countries - Relief for textile, marine sectors
International Media (Al Jazeera, NYT, Reuters):
Framing: Cautious—deal announced, details scarce
Headlines: - "Modi, Trump Announce India-US 'Trade Deal': What We Know and What We Don't" - "Trump Announces Initial Trade Deal With India, Cutting Tariffs to 18%"
Emphasis: - Gap between Trump's claims and India's confirmation - Russia angle and geopolitical implications - Market reaction - Analysts urging caution until details emerge
7. Five Unanswered Questions
1. What exactly did India commit on Russian oil? Trump says stop buying. India hasn't confirmed. Russia denies hearing anything. The truth matters for global energy markets and India-Russia ties.
2. What does "tariffs to ZERO" mean for India? Is this on all goods? Only industrial goods? Over what timeframe? Commerce Minister said "talks for comprehensive deal are ongoing."
3. Is agriculture really protected? Goyal says yes. US Agriculture Secretary celebrated "access to Indian markets." Both can't be fully true.
4. What's in the $500 billion commitment? Is it binding? Over what period? What happens if India doesn't meet it?
5. When will we see the actual agreement text? So far, it's been social media posts and press conferences. No official document has been released.
8. What Happens Next
Short Term (Weeks):
- Official text of the agreement should emerge
- Parliament session will see debates
- More details on agriculture, oil will clarify
Medium Term (Months):
- Watch Indian oil imports data—is Russian crude actually declining?
- Track US agricultural exports to India
- Monitor textile, pharma export growth
Long Term (Years):
- Does India truly become a China-plus-one manufacturing hub?
- How does India-Russia relationship evolve?
- Will comprehensive FTA materialize?
The Balanced View
The India-US trade deal is neither the "historic victory" some claim nor the "complete surrender" others allege. It's a pragmatic de-escalation that:
Positives: - Provides immediate tariff relief to exporters - Avoids a damaging trade war - Positions India competitively vs Southeast Asian rivals - Demonstrates both countries can still negotiate despite tensions
Concerns: - Key details remain unclear - Russian oil commitment is ambiguous - Agricultural implications need clarity - $500 billion outflow vs export growth balance
The Verdict: This is a framework agreement, not a final deal. The details that emerge over the coming weeks will determine whether it's truly balanced or tilted in one direction. Until then, be skeptical of anyone claiming complete victory or total defeat.
How to Stay Informed
Track this story's evolution with The Balanced News: - See how 50+ Indian news sources cover ongoing developments - Compare left vs right framing as details emerge - Get notifications when major updates drop
Download The Balanced News app to cut through the spin.
Related Reading: - India Budget 2026-27: Expert Analysis - How We Calculate Political Bias - Understanding Media Bias in India
This analysis was compiled using reports from The Hindu, Times of India, Republic, NDTV, Al Jazeera, New York Times, Reuters, LiveMint, Indian Express, and official government statements.
