U.S. Will Cut Tariffs on India to 18% in Trade Deal

The United States and India reached a trade agreement that will immediately lower American tariffs on Indian goods to 18 percent while opening India’s market to U.S. energy and other products, President Donald Trump announced Monday.

Trump said he agreed to reduce the reciprocal tariff rate on India from 25 percent to 18 percent following a phone call with Prime Minister Narendra Modi. The administration will also drop an additional 25 percent tariff that had been imposed on India over its purchases of Russian oil.

The combined reduction brings the total tariff rate on many Indian goods down from 50 percent to 18 percent.

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade