Tariffs Reduced
The US and India reached a trade agreement that reduced tariffs on Indian goods to 18%.
Context
President Trump imposed a 25% tariff on Indian goods in June 2025, citing India’s large trade surplus with the US and its refusal to open markets to American products. Trump then added another 25% tariff in August 2025 over India’s purchases of Russian oil, bringing the combined rate to 50%. India relies on oil imports and has been buying discounted Russian oil since Russia’s February 2022 invasion of Ukraine.
Deal Details
On Monday, Trump announced the agreement on Truth Social following a phone call with Indian Prime Minister Narendra Modi.
