US-India Trade Deal Cuts Tariffs to 18%, India to Stop Russian Oil Purchases
The United States and India have reached a trade agreement that reduces U.S. tariffs on Indian goods from 50% to 18%. In return, India has agreed to halt purchases of Russian oil and lower trade barriers, while committing to buy more U.S. energy, technology, and agricultural products. The announcement was made by U.S. President Donald Trump following a call with Indian Prime Minister Narendra Modi.
The deal has already boosted U.S.-listed shares of major Indian companies, including Infosys, Wipro, and HDFC Bank, and strengthened sentiment in technology and semiconductor markets. Trump highlighted that India would also increase purchases of American-made goods and reduce tariffs and non-tariff barriers to zero, aiming to bring India in line with other Asian trading partners.
While details on the implementation timeline and specific product commitments remain sparse, Indian officials hailed the agreement as an opportunity to enhance collaboration with the U.S., unlock technology access, and support domestic industries. Modi thanked Trump on social media, calling the tariff reduction a positive step for the 1.4 billion people of India.
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