Trump Announces Major US–India Trade Deal, Tariffs on Indian Goods to Be Cut

US President Donald Trump has announced that the United States and India have reached an agreement on a significant bilateral trade deal following a telephone conversation with Indian Prime Minister Narendra Modi.

According to Trump, under the agreement the United States will reduce tariffs on Indian goods to 18 percent, while India has pledged to eliminate all tariffs and non-tariff barriers on American products. Prime Minister Modi welcomed the tariff reduction and thanked President Trump for the decision.

In a post on his social media platform Truth Social, Trump said the two leaders also discussed the Russia–Ukraine war during their conversation. He claimed that Prime Minister Modi agreed to stop purchasing Russian oil and instead source oil from the United States and Venezuela. As a result, the US will lift the additional 25 percent penalty tariff previously imposed on India over its purchase of Russian crude.

Trump further said that, as part of the deal, India has committed to purchasing more than $500 billion worth of American goods in the coming years. These purchases will include energy, technology, agricultural products, and coal.

The US president said the agreement could play a positive role not only in boosting trade but also in easing global conflicts.

Prime Minister Modi, in a message posted on social media platform X, expressed satisfaction with the agreement. He said, “When two of the world’s largest economies and biggest democracies work together, it benefits the people of both countries and creates new opportunities for cooperation.”

It may be recalled that in August last year, trade relations between the two countries became strained after the United States imposed tariffs of up to 50 percent on Indian goods, leading to a sharp decline in Indian exports. The newly announced deal is being viewed as a major step toward easing those tensions.