India–US trade breakthrough: Trump agrees to deal, tariffs on Indian goods cut to 18%

A major development has taken place in India–US trade relations, with US President Donald Trump announcing his acceptance of a trade agreement with India. He also confirmed a sharp reduction in retaliatory tariffs on Indian goods to 18%.

Until now, Indian products faced tariffs of up to 50%, including an additional 25% levy imposed over India’s purchase of Russian oil. The White House has officially confirmed the rollback of these additional duties.

The announcement followed a phone conversation between President Trump and Indian Prime Minister Narendra Modi on Monday. In a post on his social media platform Truth, Trump described Modi as a strong and respected leader and a close friend.

Trump said the two leaders discussed trade, the Russia–Ukraine war, India’s decision to halt oil imports from Russia, and increased purchases of oil from the US and Venezuela. He expressed hope that these steps could contribute to ending the Ukraine conflict.

According to Trump, India is committed to significantly increasing imports of American products, including energy, technology, agricultural goods, coal, and other commodities, with purchases exceeding $500 billion. He added that bilateral ties would grow stronger than ever.

Responding to the announcement, Prime Minister Modi stated that Indian goods would now face only an 18% tariff in the US market, calling it a welcome development. He thanked President Trump on behalf of 1.4 billion Indians, though he did not specifically mention the trade agreement.

Meanwhile, US Ambassador to India Sergio Gor confirmed the phone call between the two leaders. The development has gained added importance as External Affairs Minister S. Jaishankar begins his three-day visit to the United States.