The United States has agreed to lower tariffs on goods from India following a negotiated trade agreement, President Donald Trump announced. The pact requires India to stop purchasing Russian oil and open additional sectors to American exports, measures seen as significant for both trade relations and market dynamics.
Washington will reduce tariffs on Indian imports to 18%, down from 50%, under the terms of the new deal. According to a White House official, this includes removing a 25% punitive duty that had been imposed on Indian products as a response to India’s purchases of Russian oil. These tariffs had been combined with an existing reciprocal tariff of 25%.
Indian Prime Minister Narendra Modi has pledged to expand India’s purchases of American goods, including a commitment to significantly increase imports of U.S. energy, such as coal, along with technology, agricultural, and other American products. India will also cease its acquisition of Russian oil under this agreement, while considering options to increase energy imports from the United States and potentially Venezuela.
Trade negotiations between the U.S. and India had previously been at an impasse due to several unresolved issues, most notably India’s continued sourcing of Russian oil.
