WASHINGTON: The United States and India have agreed to a new trade deal that cuts tariffs on Indian goods to 18 percent. The move follows months of negotiations between U.S. President Donald Trump and Indian Prime Minister Narendra Modi. The agreement aims to ease trade tensions and boost business between both countries.
Under the deal, the U.S. will reduce tariffs on many Indian products to 18 percent. Previously, duties on Indian goods had been as high as 50 percent, including extra penalties linked to India’s Russian oil purchases. This reduction was confirmed by U.S. officials and welcomed by Indian leaders.
A White House official said the tariff cut comes as the United States lifts additional punitive duties against India. These sanctions were tied to New Delhi’s earlier purchases of Russian crude oil. Now, only the new 18 percent reciprocal tariff will remain in place.
Prime Minister Modi also responded to the deal on social media. He thanked President Trump and said the reduced tariff will help Indian products compete better in global markets. Modi said the move benefits India’s 1.4 billion people and reflects strong ties between the two democracies.
Officials said the agreement could help strengthen economic ties between the United States and India. Under the deal, New Delhi is also expected to lower its own trade barriers and buy more U.S. goods. Trump claimed that India may purchase energy, technology, and other products worth hundreds of billions of dollars from the United States.
Experts believe the tariff reduction will ease pressure on Indian exporters. The earlier high tariffs had weighed on markets and investor confidence. With the new rates, India’s exports may become more competitive, especially in sectors like textiles, engineering, and technology.
The reduction follows months of tense negotiations. Last year, the U.S. imposed higher duties on Indian goods to push New Delhi to stop buying Russian oil. India’s reliance on crude imports had helped reduce its energy costs, but it also triggered trade disputes with Washington.
In other news read more about India Confirms Two Nipah Virus Cases as Thailand, Malaysia Increase Screening
Despite challenges, the deal signals a turnaround in U.S.-India trade relations. Both countries have said they will continue talks to deepen economic cooperation. Markets responded positively to the announcement, with Indian stocks and the national currency seeing gains after news of the tariff cuts.
