The United States and India have reached a trade deal and will immediately move to lower tariffs on each other’s goods, US President Donald Trump announced on Monday.
Trump said the agreement was reached during a phone call with Indian Prime Minister Narendra Modi, adding that both sides agreed to ease trade barriers and expand bilateral commerce.
According to Trump, the United States will cut its “reciprocal” tariff on Indian goods to 18% from 25%, with immediate effect. He also claimed that India will move to reduce its tariffs and non-tariff barriers on US goods to zero.
Trump further said Modi committed to significantly increasing purchases of American products, including energy, technology and agricultural goods, and to sharply reduce India’s imports of Russian oil in favour of supplies from the United States and potentially Venezuela.
The announcement was made on Trump’s Truth Social platform, but no formal text of the agreement has been released. It remains unclear whether any binding documents have been signed.
The White House and the Office of the US Trade Representative did not immediately provide additional details following the announcement.
India confirms tariff cut, not broader claims
Modi later confirmed the reduction in US tariffs in a post on X, welcoming the move as a boost for Indian exports. He described the decision as beneficial for both countries and said closer cooperation between the world’s largest democracies would unlock new economic opportunities.
However, India has not publicly confirmed other elements outlined by Trump, including commitments on eliminating trade barriers or halting Russian oil purchases.
Legal and political questions remain
Legal experts and some Democratic lawmakers have questioned whether Trump can finalise binding trade agreements without congressional approval. Trump and his supporters argue that Congress has previously delegated sufficient authority to the executive branch to pursue such deals.
Trade specialists cautioned against reacting too quickly to public announcements.
“It’s official once the Federal Register notice is posted with dates, tariff codes and enforcement details,” said Lori Mullins, director of operations at Rogers & Brown Custom Brokers.
Talks had stalled last year
Trade negotiations between Washington and New Delhi had slowed last year amid disagreements, including India’s continued reliance on Russian oil.
In August, Trump imposed a 25% tariff on Indian goods in response to those purchases, adding to existing trade tensions between the two countries.
The announcement comes just one week after India concluded a major free trade agreement with the European Union, which Modi described as a landmark deal. Some analysts had suggested progress with Europe could accelerate negotiations between India and the United States.
For now, markets and businesses are awaiting clearer confirmation and formal documentation to determine how and when the proposed trade changes will be implemented.
