India–US Trade Deal Announced: US Cuts Tariffs, Trump Calls It A Historic Reset

The United States and India have announced a major new trade deal today, marking a significant shift in economic ties between the two countries.

US President Donald Trump said the agreement would lower tariffs, boost American farmers, and reset India–US relations after years of tension.

Under the deal, theUS will cut tariffs on Indian goods to 18%, removing an additional penalty that had been imposed earlier.

In return, India has agreed to reduce tariffs on US products, remove certain trade barriers, and gradually stop buying oil from Russia, according to the US side.

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President Trump described the agreement as “historic” and said it came after a phone call with Prime Minister Narendra Modi, whom he called “one of my greatest friends.”

Trump said India also committed to buying over $500 billion worth of US energy, technology, and agricultural products in the coming years.

India is currently one of the world’s largest importers of Russian oil, buying around 1.5 million barrels per day. US officials say these purchases will now be reduced in phases over the next few months. Reports suggest Indian imports of Russian oil have already started falling and could drop further by March.

Reacting to the deal, US Agriculture Secretary Brooke Rollins said it would be a big win for American farmers. She stated that the agreement would help the US export more farm products to India’s large market, raise prices for farmers, and bring more income into rural America.

“This deal will pump fresh cash into rural America,” Rollins said in a post on X, thanking President Trump for supporting US farmers.

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The announcement has sparked debate in India, as the country has traditionally protected its domestic industries, especially agriculture and manufacturing, with high tariffs.

Opening markets further to US goods could be a major policy shift, and so far, the Indian government has not officially confirmed all the details mentioned by the US.

The trade deal comes shortly after India finalised a free trade agreement with the European Union, indicating a broader push to reshape its global trade relationships.

(With inputs from agencies)