President Donald Trump said on Monday that the United States had reached a trade agreement with India that would sharply reduce American tariffs on Indian goods, in exchange for India halting purchases of Russian oil and lowering trade barriers. Under the agreement, tariffs on Indian exports to the United States will be cut to 18 percent from 50 percent, Trump said in a post on his social media platform, Truth Social. He added that India would reduce trade barriers to zero and stop buying Russian oil.
A White House official later told Reuters that the United States would rescind a 25 percent punitive tariff imposed on all imports from India over its purchases of Russian oil. That duty had been stacked on top of a separate 25 percent “reciprocal” tariff rate.
Prime Minister Narendra Modi confirmed the agreement later on Monday, welcoming the reduction in tariffs. In a post on the social media platform X, Modi said he had spoken with Trump and praised the announcement. “Wonderful to speak with my dear friend President Trump today,” he wrote. “Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
India-US Trade Deal News Live: US to Rescind 25% Penalty Imposed on India Over Russian Oil Purchase, Tariff Rate to be at 18%, Confirms White House Official
