Trump Announces India–US Trade Deal, Cuts Tariffs to 18%

In a significant development for India–US trade relations, the United States has agreed to reduce reciprocal tariffs on Indian goods from 50% to 18% following a phone conversation between US President Donald Trump and Prime Minister Narendra Modi. The announcement was made by President Trump, who described the understanding as a “trade deal” aimed at strengthening economic ties and advancing broader geopolitical goals.

Previously, Washington had imposed a 25% import duty on Indian goods under its Liberation Day tariffs, along with an additional 25% levy linked to India’s purchases of Russian oil. These measures had placed India among the most heavily tariffed US trading partners. The latest move, Trump said, reflects improved cooperation and mutual respect between the two leaders.

According to Trump, the tariff reduction is linked to India’s commitment to lower its own tariffs and non-tariff barriers on American goods to zero, while also sharply increasing purchases from the United States. He claimed that Prime Minister Modi agreed to “buy American” at much higher levels, covering over $500 billion worth of US energy, technology, agricultural products, coal, and other goods.

A key and controversial element of Trump’s statement was his assertion that India has agreed to stop buying Russian oil and instead source more energy from the United States and possibly Venezuela. Trump suggested this shift could help bring an end to the Russia–Ukraine war. “He agreed to stop buying Russian Oil… This will help END THE WAR in Ukraine,” Trump wrote on social media.

However, India has not officially confirmed any commitment to halt Russian oil imports. Indian officials have indicated that legal paperwork, timelines, and the final structure of the agreement are still under discussion, and a formal announcement with detailed implementation plans will follow once negotiations are complete.

Prime Minister Modi welcomed the US decision to cut tariffs, calling it a positive step for trade and economic cooperation. He said the reduced tariff would benefit the Make in India initiative and thanked President Trump on behalf of India’s 1.4 billion people. Modi also emphasized that cooperation between the world’s largest democracies creates mutually beneficial opportunities.

Trump concluded his statement by underscoring the personal rapport between the two leaders, saying, “Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most.”