US slashes tariffs on most Indian products
The US is dropping tariffs on most Indian products from a steep 50% down to 18%.
Announced by President Trump and Prime Minister Narendra Modi, this move also removes the additional 25% duty that had been applied to many Indian products in response to India's purchases of Russian oil and aims to boost business between both countries.
What does the agreement cover?
The agreement covers $500 billion worth of India's purchases from the US—think energy, tech and coal.
The US says it will remove reciprocal tariffs, including, subject to the successful conclusion of an interim agreement, generic pharmaceuticals, gems and diamonds, and aircraft parts.
In return, India will lower tariffs on American industrial goods and foods like nuts, fruits, wine, and more.
Indian goods get a price edge in the US
With these new rates, Indian goods get a price edge in the US over competitors like Vietnam or Southeast Asia.
This could mean cheaper imports for buyers—and a bigger spotlight for Indian products stateside.
Plus, it sets the stage for even closer trade ties between India and the US.