Trump and India Call Off Their Trade War, but the Terms of Peace Are Murky

In February 2026, the U.S. and India declared an end to their trade war, which began the previous summer over tariffs and escalated to include issues like the Ukraine war and visas. The announcement followed social media posts from President Trump and Prime Minister Modi, with Trump stating the U.S. would reduce its reciprocal tariff on Indian goods from 50% to 18%. While Modi confirmed the agreement and praised Trump, details beyond the tariff rate remain unclear, including Trump's claim of India spending $500 billion in the U.S. The news was initially met with relief, boosting Asian stocks, particularly in India. Despite the positive reaction, businesses and investors await further clarification on the agreement's specifics.