US-India trade deal: Tariffs cut, $500B in exports

US and India cut tariffs on Indian goods to 18%. India will halt Russian oil imports and buy $500B+ in US goods, aiming to boost trade and resolve tensions.

The United States and India have finalized a significant trade agreement, reducing US tariffs on Indian goods from 25% to 18%, effective immediately. This development follows a conversation between Donald Trump and Narendra Modi, during which Modi agreed to halt Russian oil imports and increase purchases of US goods—including energy, technology, agriculture, and coal—totaling over $500 billion. The deal aims to strengthen economic ties and resolves recent trade tensions that began when the US raised tariffs in response to India’s Russian oil imports. The tariff reduction is expected to revive trade talks and benefit Indian exporters, particularly in shrimp, textiles, and jewelry, which were previously impacted by higher duties. Additionally, India has committed to lowering its own tariffs and non-tariff barriers on US goods, further enhancing bilateral trade. Sectors such as pharmaceuticals and electronics were not affected by the earlier tariffs.