India-US Trade Deal: Trump Cuts Tariffs on Indian Products to 18 pc, India to Buy More American Goods
The agreement slashes US tariffs on Indian goods from 25% to 18%, while India commits to stop Russian oil imports, ramping up purchases of American energy, technology, agriculture, and coal—potentially exceeding $500 billion. India will also reduce tariffs and non-tariff barriers on US products and adopt a stronger “Buy American” stance.
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The United States will reduce reciprocal tariffs on Indian goods from 25 percent to 18 percent under a new trade agreement reached between India and the US, President Donald Trump announced on Monday following a phone conversation with Prime Minister Narendra Modi.
In a statement shared on social media, Trump described his conversation with Modi as “an honor” and said the two leaders discussed trade, global peace, and efforts to end the Russia–Ukraine war. He claimed that India agreed to stop buying Russian oil and instead increase purchases from the United States and potentially Venezuela, a move he said would help weaken Russia’s war effort.
“Out of friendship and respect for Prime Minister Modi, and as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25% to 18%,” Trump said.
Under the agreement, Trump stated that India would also work toward reducing its tariffs and non-tariff barriers on American goods to zero. He added that New Delhi committed to buying over USD 500 billion worth of US products, including energy, technology, agricultural commodities, coal, and other goods.
Prime Minister Modi, in his own post on X (formerly Twitter), welcomed the announcement and thanked President Trump for the decision. “Delighted that Made in India products will now have a reduced tariff of 18%,” Modi said, calling it a significant step for trade cooperation between the two countries. He emphasized that stronger economic ties between the world’s two largest democracies would benefit their people and create new opportunities for mutually beneficial cooperation.
While official details of the agreement are yet to be released, the announcement marks a significant development in bilateral trade ties and could reshape commercial flows between New Delhi and Washington in the coming months.
