U.S. President Donald Trump and Indian Prime Minister Narendra Modi have agreed on a major trade deal. The agreement lowers U.S. tariffs on Indian goods from 25 percent to 18 percent. The move ends months of tension over trade policies and strained economic relations. Trump said India will also remove barriers on American products, reducing tariffs to zero. Modi welcomed the deal and called it a step toward stronger cooperation. He said the agreement benefits both nations and will unlock new economic opportunities for businesses and consumers.
A key part of the trade deal requires India to stop buying Russian oil. Trump said this change will increase India’s purchases of American energy and possibly oil from other countries. The U.S. will also drop a 25 percent penalty tariff previously applied because of India’s Russian oil imports. The agreement covers more than $500 billion in American goods. It includes technology, agriculture, energy, and coal products. Both leaders described the pact as a step to strengthen economic ties and trade between the two countries.
Analysts said U.S. markets reacted positively. Lower tariffs and increased trade could boost businesses on both sides. Critics, however, argued that Indian exporters still face higher tariffs than before. Some warned the deal might not fully relieve importers who previously paid much lower rates. This trade deal follows India’s recent free trade agreement with the European Union. It shows India is diversifying trade partnerships and securing stable growth amid global economic tensions.
Trump and Modi said they will work quickly to implement the agreement and ensure it benefits both countries. They emphasized that the deal strengthens long-term cooperation and builds a foundation for closer economic and strategic ties. Both leaders highlighted that it will create new opportunities for American and Indian businesses across multiple sectors. Officials also said that future talks will focus on expanding trade in services, high-tech industries, and advanced manufacturing, aiming to increase investment and innovation between the two nations.
