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Trump Announces Trade Deal with India, Tariffs Slashed to 18%
U.S. President Donald Trump cuts Indian import tariffs from 50% to 18% after India agrees to halt Russian oil purchases and lower trade barriers, boosting market sentiment.
ND
by News Desk
2026-02-03
Trump Announces Trade Deal with India, Tariffs Slashed to 18%

U.S. President **Donald Trump** announced a trade agreement with **India** on Monday that will cut tariffs on Indian imports from **50% to 18%**, sparking a relief rally across Indian markets on Tuesday.

 

The deal, aimed at boosting bilateral trade, comes in exchange for **India halting Russian oil purchases** and **reducing trade barriers**, according to Trump. While full details of the agreement are yet to be released, the announcement immediately lifted sentiment among **exporters, investors, and policymakers** in India.

 

Indian stock indices saw early gains, reflecting optimism that lower U.S. tariffs will improve export competitiveness, particularly in **textiles, steel, and agricultural goods**, which have been hit by high import duties.

 

Economists say the deal may also strengthen diplomatic and economic ties between the two nations, coming at a time when **U.S.-India relations** have been strategically important amid global energy and security concerns.

 

Analysts caution, however, that the agreement’s **implementation and scope** remain unclear, including how long tariff cuts will last and which products are covered. Market watchers expect more clarity in the coming weeks as trade officials from both countries finalize details.

 
Tagged:

TradePolicy

TariffCuts

USIndiaTradeDeal

IndianMarkets
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