India-US Trade Deal Live Updates: President Donald Trump said on Monday that the United States had reached a trade agreement with India that would sharply reduce American tariffs on Indian goods, in exchange for India halting purchases of Russian oil and lowering trade barriers. Under the agreement, tariffs on Indian exports to the United States will be cut to 18 percent from 50 percent, Trump said in a post on his social media platform, Truth Social. He added that India would reduce trade barriers to zero and stop buying Russian oil.
A White House official later told Reuters that the United States would rescind a 25 percent punitive tariff imposed on all imports from India over its purchases of Russian oil. That duty had been stacked on top of a separate 25 percent “reciprocal” tariff rate.Key Highlights of the US–India Trade Deal
Key Highlights
Tariff Reduction:
The United States has announced a cut in reciprocal tariffs on Indian goods to 18%, down from earlier levels as high as 50%, providing relief to Indian exporters.
Improved Market Access:
Lower tariffs are expected to improve access for Indian products in the US market, benefiting export-oriented sectors such as manufacturing, engineering goods, auto components and gems & jewellery.
Capital Flows & Growth Boost:
India’s FY27 GDP growth is now seen closer to 7.4%, according to the Chief Economic Adviser, driven by stronger investment sentiment and higher capital inflows.
Strategic Partnership Signal:
The deal reinforces the strategic economic partnership between India and the US, aligning trade, investment, energy and technology interests.
Agriculture Claims:
US officials claim the deal will allow greater exports of American farm products to India, but India has not yet clarified the scope or terms, especially for sensitive sectors.
Energy & Purchases (Claimed by US):
The US side has stated that India will significantly increase purchases of US energy, technology and agricultural products, though no official Indian confirmation or binding text has been released.
Russian Oil Aspect:
The US President has claimed India would halt purchases of Russian oil, but India has not confirmed any such commitment.
Posted from: 0001-01-01 00:00:00Z2026-02-03 10:19:41Z[]this blog via Microsoft Power Automate.
