US President Donald Trump has revealed a new trade agreement with Indian Prime Minister Narendra Modi that lowers tariffs on Indian goods entering the United States to 18% from earlier high levels. The announcement was made by Trump on his social media platform after speaking with Modi by phone.
Under the arrangement, India also agreed to reduce trade barriers for American products and stop buying oil from Russia — a key concession cited by Trump in his announcement. Modi expressed his pleasure at the deal, calling it a positive step for both nations.
In addition to cutting US tariffs, Trump said India has committed to purchasing significant amounts of US goods — including energy, technology, and agricultural products — potentially totaling hundreds of billions of dollars. The leaders discussed broader issues, including international security and the war in Ukraine, during their call.
The tariff reduction marks a reversal of previous trade tensions, which saw punitive duties of up to 50% imposed on Indian exports in response to New Delhi’s energy purchases from Russia. Market reaction was positive, with Indian stocks and the rupee strengthening following the announcement.
This news follows India’s recent landmark trade deal with the European Union, marking a busy period for New Delhi on the global trade stage.
