India–US Trade Deal Brings Immediate Tariff Relief
India and the United States have agreed to a new trade deal that will reduce reciprocal tariffs on Indian imports into the US from 25 percent to 18 percent, US President Donald Trump announced following a phone call with Prime Minister Narendra Modi.
Trump said the agreement will be effective immediately, providing instant tariff relief for Indian exports to the American market.
“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India,” Trump said.
India to Cut Tariffs and Non-Tariff Barriers on US Goods
As part of the trade agreement, India has committed to reducing its tariffs and non-tariff barriers on US goods to zero, according to Trump’s statement. This move is expected to improve access for American companies across multiple sectors.
The deal signals a renewed push to strengthen bilateral trade relations between the two countries.
India Commits Over $500 Billion in US Purchases
Trump also said that Prime Minister Modi committed to significantly increasing purchases of American products under the “BUY AMERICAN” initiative.
According to the announcement, India will buy over $500 billion worth of US energy, technology, agricultural products, coal, and other goods in the coming period.
“The Prime Minister also committed to BUY AMERICAN, at a much higher level,” Trump said.
Stronger India–US Economic Ties Ahead
Describing the relationship as strong and results-oriented, Trump emphasized the leadership partnership between the two nations.
“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done,” he added.
The India–US trade deal marks a significant development in bilateral economic cooperation, offering immediate tariff relief for Indian exporters while opening Indian markets further to American goods.
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