Donald Trump announces India-US trade deal, reciprocal tariff cut down to 18%: Key points

Trump announces tariff reduction for India, lowers rate from 25% to 18% after phone call with PM Modi

US President Donald Trump said the United States will cut reciprocal tariffs on India to 18% from 25% and eliminate non-tariff barriers, while India will reduce its own trade barriers and boost purchases of US energy, technology, and agricultural products as part of a bilateral trade deal.

Key points from Trump’s Truth Social post:

• The United States will reduce reciprocal tariffs on India to 18% from 25%, effective immediately.
• India will move to reduce tariffs and non-tariff barriers against the US to ZERO. Trump said the decision was made “out of friendship and respect for Prime Minister Modi” and at his request.
• Prime Minister Modi is committed to “BUY AMERICAN” at a much higher level. India will purchase over $500 billion worth of US energy, technology, agricultural, coal, and other products.
• Trump said Modi agreed to stop buying Russian oil and instead buy more energy from the US and potentially Venezuela.
• The two leaders also discussed ending the Russia-Ukraine war, with Trump saying the deal would help “END THE WAR in Ukraine”.