US President Donald Trump has said that an agreement has been reached on a trade deal with India.
President Donald Trump announced that he has agreed to a trade deal with India under which US tariffs on Indian products will be reduced from 50 percent to 18 percent. In return, India will stop purchasing Russian oil and will buy oil from the United States and possibly from Venezuela.
India’s new reciprocal tariff is 1 percent lower than Pakistan’s. In August 2025, the US administration imposed a 19 percent reciprocal tariff on a wide range of Pakistani products, which was lower than the initially proposed 29 percent.
After a telephone conversation with Indian Prime Minister Narendra Modi, President Trump said in a social media post that, at Prime Minister Modi’s request, the United States and India immediately agreed to a trade deal under which tariffs on India are being reduced to 18 percent.
A White House official told the news agency Reuters that the United States is removing the additional 25 percent duty imposed on Indian imports due to the purchase of Russian oil. This duty had been applied on top of the existing 25 percent reciprocal tariff.
Trump said that Prime Minister Modi has agreed to purchase more than 500 billion dollars worth of US energy, technology, and other goods.
Indian Prime Minister Narendra Modi, in a post on the social media platform X, said that he was very happy to speak today with his dear friend President Trump. He added that he was extremely pleased to learn that tariffs on “Made in India” products would now be reduced to 18 percent.
Following this news, shares of major Indian companies listed in the United States rose sharply. During afternoon trading, shares of IT firm Infosys increased by 3.53 percent, Wipro rose by 7 percent, HDFC Bank gained 3.4 percent, and the iShares MSCI India ETF recorded an increase of 3.3 percent.
