India-U.S. Trade Deal: Tariffs Cut, Strategic Ties Strengthened

WASHINGTON, D.C. – India and the United States have reached a significant trade agreement, with the U.S. reducing reciprocal tariffs on Indian goods from 25% to 18%, U.S. President Donald Trump announced following a phone call with Prime Minister Narendra Modi. In exchange, India will eliminate tariffs and non-tariff barriers on U.S. goods and commit to increased purchases of American energy, technology, agricultural, and coal products, totaling over $500 billion.

Prime Minister Modi welcomed the move, highlighting that “Made in India” products will benefit from lower tariffs, and stressed the broader advantages of collaboration between the world’s two largest democracies. “When large economies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he said.

The deal comes after months of stalled negotiations due to prior U.S. tariffs on Indian imports tied to Russian crude. Analysts note that the agreement gives India a competitive edge over other Asian exporters, where U.S. tariffs range from 19% to 34%, boosting Indian exports across key sectors.

Beyond trade, the leaders addressed global security, including the Russia-Ukraine conflict, with Modi agreeing to reduce Russian oil imports. Observers say the deal strengthens India-U.S. strategic alignment, catalyzes private-sector investment, and fosters technological and energy collaboration, particularly in high-tech manufacturing, agriculture, and energy infrastructure—signaling a new phase of economic and strategic cooperation.