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India and the US have finally sealed a long-awaited trade deal, easing months of tension. The headline is, 25% tariff on Indian exports is now cut to 18%.
The announcement came straight from US President Donald Trump, who shared the update on Truth Social, calling it a breakthrough after prolonged negotiations.
The backdrop: Trump had imposed a 25% tariff on Indian exports last year after trade talks dragged on.
Things escalated when the tariff was doubled to 50%. The US also accused India of buying Russian oil and indirectly backing Moscow in the Ukraine war.
What changed: Trump said Prime Minister Narendra Modi has agreed to stop buying Russian oil and instead ramp up energy purchases from the US and possibly Venezuela.
That concession appears to have unlocked the tariff rollback.
The big promise: according to Trump, India will also move to cut tariffs and non-tariff barriers on American goods to zero. He claimed India has committed to “BUY AMERICAN” across energy, tech, agriculture, coal, and more, with total purchases potentially crossing $500 billion.
