The United States and India have reached a trade deal, under which the U.S. will lower its "reciprocal" tariffs on India from 25 percent to 18 percent, U.S. President Donald Trump announced Monday.
India will likewise cut tariffs and non-tariff barriers against the United States, Trump said in his social media post.
"The prime minister also committed to 'buy American,' at a much higher level, in addition to over 500 billion dollars of U.S. energy, technology, agricultural, coal, and many other products," Trump said.
Indian Prime Minister Narendra Modi has agreed to "stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," Trump added.
Besides the 25-percent "reciprocal" tariffs, Trump also imposed an additional 25 percent tariff in 2025 purportedly as a punishment for India's purchase of Russian oil.
A White House spokesperson confirmed to CNN that Trump will also completely lift the additional 25 percent tariff imposed to force India to stop purchasing Russian oil.
The White House has not yet released an official announcement on this matter.
On the same day, Modi said on X (formerly twitter) that he is "delighted that Made in India products will now have a reduced tariff of 18 percent."
Trump signed an executive order on July 31, 2025, subjecting Indian goods imported into the United States to a 25 percent tariff starting Aug. 7.
On Aug. 6, 2025, Trump signed another executive order that the U.S. would impose an additional 25 percent tariff on India for it is "currently directly or indirectly importing Russian Federation oil."
India and the United States had already committed to negotiations on a bilateral trade agreement as early as February 2025. However, differences in positions, particularly regarding oil procurement, have delayed the finalization of any trade deal between the two nations.
U.S. lowers tariffs on India under trade deal
U.S. lowers tariffs on India under trade deal
U.S. lowers tariffs on India under trade deal
