US-India Trade Deal Sealed, Reciprocal Tariffs To Be Cut From 25% To 18%: Trump

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US President Donald Trump on Monday announced that Washington and New Delhi have reached a trade agreement under which reciprocal tariffs on Indian goods will be reduced from 25 percent to 18 percent. The announcement came shortly after Trump held a phone conversation with Prime Minister Narendra Modi. Posting on Truth Social, Trump described the talks as productive, covering trade and global security issues, and claimed the agreement would deepen economic ties while reshaping India’s energy sourcing.

Tariffs & Non-Tariff Barriers To Be Cut To Zero

US President Donald Trump said both sides have agreed to move towards eliminating trade barriers altogether. According to Trump, while the US will immediately lower reciprocal tariffs from 25% to 18%, India will also begin reducing its own tariffs and non-tariff barriers against the United States to zero. He described this as a key pillar of the trade deal reached after his phone call with Prime Minister Narendra Modi, saying the move would open markets further and accelerate bilateral commerce.

Tariff Cut & Energy Commitments

The US President added that India had agreed to stop purchasing oil from Russia and instead increase imports from the United States and Venezuela. Trump linked this shift to broader efforts aimed at ending the war between Russia and Ukraine, saying reduced Russian energy revenues could help bring the conflict to a close.

Calling PM Modi a “powerful and respected leader”, Trump said discussions also touched on regional and international developments. He described the agreement as taking effect immediately.

‘Buy American’ Push

Trump also said Modi had committed to significantly expanding purchases of US products under a “Buy American” approach. According to the US President, this could involve more than $500 billion worth of American energy, technology, agricultural goods, coal and other products over time.

He added that the deal would strengthen India-US relations and said both leaders were focused on delivering results. Trump shared several posts highlighting ties with India, including images related to Modi and India’s landmarks

The announcement comes amid ongoing negotiations over a broader bilateral trade framework, with both sides seeking improved market access and reduced barriers. If implemented as outlined, the tariff cut could mark a significant step in India-US economic engagement.