India-US Trade Deal LIVE: Trump Cuts Tariffs to 18% After India Agrees to Halt Russian Oil Purchases

The India-US trade deal announced by Donald Trump marks a major shift in bilateral economic relations.

Washington/New Delhi:India US

In a major diplomatic and economic development, U.S. President Donald Trump announced a landmark trade deal with India on Monday, saying that the United States will reduce tariffs on Indian goods to 18% from previous levels, while India has agreed, according to Trump, to stop purchasing oil from Russia.

The announcement was made by President Trump on social media following a phone call with Prime Minister Narendra Modi, which both leaders described as friendly and constructive.

What the Deal Includes India US

According to multiple sources:

• Tariffs on Indian goods entering the U.S. will be reduced to 18%, down from about 25% under the existing reciprocal tariff regime.

• An additional 25% tariff that had been imposed as a punitive measure tied to India’s previous Russian oil purchases will be removed.

• Trump said India has agreed to halt buying Russian oil and to increase purchases of U.S. energy, technology, agricultural products, and possibly Venezuelan oil.

• India is also expected to lower its own tariffs and non-tariff barriers on U.S. goods — potentially to zero — though specifics and timelines for this part of the agreement remain unclear.

Leaders’ Statements

President Trump described the deal as a “historic agreement” that strengthens economic ties and framed India’s commitment to reduce Russian oil purchases as a contribution toward resolving global geopolitical tensions.

Prime Minister Narendra Modi publicly welcomed the tariff reduction, thanking Trump and highlighting the future potential for Made in India products to become more competitive in the U.S. market. Modi’s statement focused on trade benefits and did not explicitly reiterate the Russian oil purchase issue referenced by Trump.

Domestic and Global Reactions India US

📈 From India

• Indian business groups and exporters, especially in seafood and textiles, greeted the tariff cut as positive news that will help boost exports to the U.S. and generate jobs.

• Government officials framed the deal as a step toward stronger bilateral partnership and economic growth, though some details — particularly around Russian oil wording and procurement commitments — have not been officially confirmed by New Delhi.

🇺🇸 From the U.S.

• Several U.S. lawmakers have supported the tariff reduction, with some, like Senator Lindsey Graham, praising Trump’s handling of the negotiations and highlighting strategic gains.

• The U.S. Chamber of Commerce described the agreement as beneficial for both countries’ businesses and workers.

🌍 Market Impact

• Financial markets reacted positively, with Indian equity indices and the rupee showing gains following the announcement.

Key Considerations and Details Still Pending India US

While Trump’s announcement sets out broad terms, several aspects remain subject to formal agreement text and official confirmation:

• Exact legal text: No full bilateral agreement text or detailed tariff schedule has yet been published.

• Energy commitments: Trump’s claim that India will “stop buying Russian oil” and redirect purchases to the U.S. and others is a political assertion and has not been formally confirmed through official Indian government notifications.

• Tariff implementation timeline: While Trump says the tariff cut is effective immediately, the technical and legal implementation across specific products may take time and require regulatory updates in both countries.

Why This Matters India US

The agreement marks a notable pivot in India–U.S. relations, which had experienced friction over tariffs and trade imbalances in recent years. At its peak, the U.S. had imposed extremely high levies on Indian goods — in some cases reaching effective levels as high as 50% when punitive and reciprocal tariffs were combined.

The new arrangement positions Indian exporters more competitively against regional peers like China, Vietnam, and Bangladesh, which face relatively higher or similar U.S. tariffs.

Looking Ahead

Officials from both nations have stressed that this deal represents the first phase of deeper trade and economic cooperation. Additional sectors — including defense, technology, agriculture, and energy — are expected to be part of ongoing dialogues in the months ahead.

As negotiations continue, analysts suggest that clarity on implementation details and formal legal texts will be key to ensuring the long-term success and mutual benefit of the India–U.S. trade framework.

FAQ Section (People Also Ask – SEO Ready)

Q1. What is the India-US trade deal announced by Trump?

The India-US trade deal involves the US cutting tariffs on Indian goods to 18%, while India is expected to reduce trade barriers and review its Russian oil imports.

Q2. Why did Trump reduce tariffs on India to 18%?

Trump said the move followed negotiations where India agreed to improve trade balance and halt or reduce purchases of Russian oil.

Q3. Has India officially confirmed stopping Russian oil trade?

India has not issued a detailed official statement yet. Experts say energy decisions may be gradual rather than immediate.

Q4. Which sectors will benefit from the tariff cut?

Indian exporters in textiles, seafood, engineering goods, pharmaceuticals, and manufacturing are expected to benefit the most.

Q5. When will the new US tariffs take effect?

Trump claimed the tariff reduction would take effect immediately, though implementation may vary by product category.