The United States has agreed to reduce tariffs on Indian goods to 18% under a new trade deal, after India committed to stop buying Russian oil and significantly increase purchases from the U.S., President Donald Trump has said. The agreement removes both the previous 25% “reciprocal” tariff and an additional 25% levy imposed over India’s Russian oil imports. As part of the pact, India has also pledged to lower tariffs and non-tariff barriers on U.S. goods to zero and to buy up to $500bn of American energy and agricultural products. The deal follows months of strained negotiations but comes amid resilient bilateral trade, with Indian exports such as pharmaceuticals, electronics and smartphones continuing to grow strongly despite earlier tariff measures.
