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US President Donald Trump announced that Washington and New Delhi have finalized a long-anticipated trade agreement that will lower tariffs on both sides and deepen commercial ties between the two countries.
In a post on Truth Social, Trump said the United States will reduce its reciprocal tariff on Indian goods from 25% to 18%, while India has agreed to cut its own tariffs and non-tariff barriers on American products to zero. He said the decision was made following discussions with Indian Prime Minister Narendra Modi.
Modi confirmed the breakthrough on X, describing the agreement as one that opens “immense opportunities for mutually beneficial cooperation.” However, the White House has yet to release a formal executive order or detailed fact sheet outlining the full terms of the deal.
Trump also claimed India has agreed to stop purchasing Russian oil, prompting the US to lift a separate 25% tariff that had been imposed over those purchases. A US official said Washington could reinstate the penalty if India resumes buying Russian crude.
According to Trump, India has additionally committed to significantly increase purchases of American-made products, including energy, technology, agricultural goods and coal, potentially amounting to hundreds of billions of dollars over time, though no timeline was provided.
Negotiations between the two countries have been underway for nearly a year, with progress slowed by disagreements over India’s trade barriers and US demands related to Russia’s war in Ukraine. Analysts say the pact reflects a strategic choice by both governments to strengthen economic alignment amid shifting global trade dynamics.
