US Cuts Tariffs On Indian Goods To 18%

The United States has agreed to sharply reduce tariffs on Indian goods, lowering them to 18 percent from as high as 50 percent, following a new understanding between President Donald Trump and Indian Prime Minister Narendra Modi. In return, India has committed to easing trade barriers, ending its purchases of Russian oil, and sourcing more energy from the US and potentially Venezuela.

Announcing the deal after a call with Modi, Trump said: “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%.” A White House official confirmed that Washington would also roll back an additional 25 percent punitive duty imposed over India’s Russian oil imports.

Prime Minister Modi welcomed the announcement, highlighting the boost for Indian exports and bilateral ties. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%,” he wrote on X, adding: “Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.” 

Trump also said India had pledged to buy more than $500bn worth of US energy, technology, agricultural and other products. Analysts described the move as a significant breakthrough after months of tense negotiations, though some cautioned it may be more of a tariff de-escalation than a full trade deal. As India gradually reduces its reliance on discounted Russian oil and diversifies suppliers, the agreement could reshape trade and energy ties between the world’s two largest democracies.