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Trump, Modi Strike Trade Deal to Halt Indian Purchases of Russian Oil
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Trump, Modi Strike Trade Deal to Halt Indian Purchases of Russian Oil

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Last updated: February 3, 2026 12:28 am
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Published: February 3, 2026
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Contents
Sign up to receive World Brief in your inbox every weekday.Slashing TariffsToday’s Most ReadThe World This WeekWhat We’re FollowingOdds and Ends

Welcome back to World Brief, where we’re looking at India striking a trade deal with the United States, the reopening of Gaza’s Rafah border crossing, and a presidential election in Costa Rica.

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Slashing Tariffs

The United States and India have struck a trade deal, U.S. President Donald Trump announced on Monday, ending a monthslong stalemate in bilateral trade talks even as foreign powers are trying to lessen their economic dependence on Washington.

Effective immediately, the United States will reduce the total U.S. tariffs on India from 50 percent to 18 percent—eliminating the 25 percent duty imposed on New Delhi for its continued purchasing of Russian oil and reducing Trump’s 25 percent reciprocal tariff by 7 percentage points.

Indian Prime Minister Narendra Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump posted on Truth Social on Monday. “Our amazing relationship with India will be even stronger going forward.”

In exchange, India will cut its duties on U.S. goods to zero and will commit to “buy American” at a higher level, including by investing more than $500 billion in U.S. agriculture, coal, energy, and technology, among others. “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi posted on X.

Trade talks between the two countries stalled last year over India’s refusal to stop purchasing Russian crude. Even after the United States imposed secondary tariffs last August to try and pressure New Delhi to terminate its relationship with Moscow, India continued importing roughly 1.5 million barrels of Russian oil each day, according to global trade data tracker Kpler.

But new pressure on the United States in the form of last week’s “mother of all deals” between India and the European Union may have incentivized the White House to reignite trade talks. After nearly 20 years, Brussels and New Delhi clinched a monumental free trade agreement last Tuesday that aimed to decrease both economies’ dependence on the United States. They join a larger shift in global trade policy similarly working to counter Trump’s trade war.

Monday’s U.S.-India deal appears to be a direct response to that growing trend, as Trump attempts to walk a line between his strong-arm trade policies and his reluctance to isolate the U.S. economy from its biggest partners.


Today’s Most Read


The World This Week

Tuesday, Feb. 3: Trump hosts Colombian President Gustavo Petro.

Wednesday, Feb. 4: U.S., Russian, and Ukrainian officials begin two-day trilateral talks in the United Arab Emirates.

Thursday, Feb. 5: The New START Treaty between the United States and Russia is set to expire.

Friday, Feb. 6: The 2026 Winter Olympics kick off in Italy.

Saturday, Feb. 7: The mandate for Haiti’s presidential transitional council expires.

Sunday, Feb. 8: Thailand holds a general election.

Japan holds snap parliamentary elections.

Portugal holds a presidential election runoff.

Israeli President Isaac Herzog begins a five-day trip to Australia.


What We’re Following

Access through Rafah. Israel reopened Gaza’s Rafah border crossing into Egypt on Monday, fulfilling one of the remaining major requirements of the U.S.-brokered cease-fire deal’s first phase. Initial reports suggest that only a limited number of Palestinians have passed through the crossing during its first day in operation, as significant restrictions are placed on people hoping to cross.

Rafah is the main route in or out of Gaza for the region’s more than 2 million residents. Prior to its closure in May 2024, around 100,000 Palestinians had exited Gaza through this corridor. But for much of the Israel-Hamas war, the crossing remained closed, restricting Palestinians from accessing vital aid and medical treatment. Israel has said that Hamas has used the crossing for smuggling weapons. Last week, Israel finally agreed to reopen the border following the return of the remains of an Israeli killed during Hamas’s Oct. 7, 2023, attack.

It is unclear how many Palestinians will be allowed to pass through the Rafah crossing. Last week, Israeli Prime Minister Benjamin Netanyahu said that only around 50 people will be allowed to enter Gaza daily, though “we are not going to prevent anyone from leaving.” Aid deliveries will not be permitted through the corridor at this time.

Conservative win. On Sunday, Costa Ricans elected right-wing populist Laura Fernández to be the country’s next president. The electoral success of the 39-year-old candidate, handpicked by outgoing President Rodrigo Chaves, marks the latest victory for Latin America’s conservatives, who have matched Trump’s immigration crackdown with their own tough-on-crime policies.

Early results showed Fernández (who will be the country’s second woman president) getting more than 48 percent of the vote, giving her enough support to avoid a runoff. Fernández has vowed to continue Chaves’s platform, including his decision last year to accept deported migrants from the United States; Chaves was ineligible to run in the 2026 election, as Costa Rica’s constitution prohibits consecutive presidential terms.

Fernández will take office in May. She follows in the footsteps of several successful right-wing candidates, including Honduran President Nasry Asfura, who took office last week after Trump personally endorsed his campaign, and Chilean President-elect José Antonio Kast, who is expected to begin his term in March.

Willing to talk? Iran and the United States will meet on Friday for negotiations in Turkey following a U.S. military buildup in the region.

U.S. special envoy Steve Witkoff will meet Iranian Foreign Minister Abbas Araghchi in Istanbul, Reuters reported, citing officials from the two countries. Other regional nations will also attend the meetings. On Monday, Witkoff was set to meet with Netanyahu and Lt. Gen. Eyal Zamir, a top Israeli military official who was recently in Washington to discuss Iran.

Trump has reportedly pressed for significant concessions from Iran, including no further enrichment of uranium, stopping support for proxy forces in the Middle East, and restrictions on its missile program. An Iranian official quoted by Reuters said that Iran was willing to be flexible on uranium enrichment.

On Monday, Iran separately protested a European Union decision to designate the country’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist group due to its recent repression of Iranian protesters. The EU decision follows a 2019 decision by the United States to label the IRGC as a terrorist group.—Sam Skove

Deadly assault in Balochistan. Pakistan’s separatist Balochistan Liberation Army (BLA) launched a coordinated operation on Saturday that killed nearly 50 people. The militants “came in dressed as civilians and indiscriminately targeted ordinary people working in shops,” Pakistani Interior Minister Talal Chaudhry said, adding that the fighters used human shields.

In response, Pakistani security forces confirmed on Sunday that they had killed at least 145 people connected to the separatist group in the southwestern Balochistan province. According to Balochistan Chief Minister Sarfraz Bugti, the number of fighters killed over the course of two days was the highest in decades. Pakistani authorities also imposed new security restrictions on the region, including bans on gathering and wearing face coverings in public spaces.

Balochistan is Pakistan’s poorest province and has faced decades of bloody conflict between BLA members and state troops. On Sunday, Bugti accused Afghanistan and India of backing the militants, repeating past claims that BLA fighters operate out of Afghan territory with Indian support. However, both Kabul and New Delhi have denied these allegations.


Odds and Ends

Pour yourself a Moscow mule and celebrate the first time that a Spanish-language album has won the Grammy’s top prize. On Sunday, Puerto Rican artist Bad Bunny won the Album of the Year award for his critically acclaimed Debí Tirar Más Fotos. “I want to dedicate this award to all the people who had to leave their homeland to follow their dreams,” Bad Bunny said in English during his acceptance speech. Other Grammy winners also criticized U.S. immigration forces during the ceremony.

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