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India-US Trade Deal Slashes Tariffs to 18%, Easing Tensions

A major trade agreement between India and the United States has slashed US tariffs on Indian goods from 50% to 18%. In exchange, India has agreed to halt purchases of Russian oil and lower its own trade barriers. The deal concludes months of tense negotiations and is expected to provide significant relief, particularly for sectors like agriculture, technology, and manufacturing. A joint statement outlining the technical implementation details is anticipated imminently.

Key Points: India-US Trade Deal Cuts Tariffs, Halts Russian Oil Imports

  • Tariffs cut from 50% to 18%
  • India halts Russian oil purchases
  • Benefits agriculture, tech, manufacturing
  • Joint statement on implementation due
  • Ends period of high trade tensions
2 min read

"Major boost for India-US ties as trade deal slashes tariffs," says Executive Director of ORF America

US-India trade deal reduces tariffs from 50% to 18%. India halts Russian oil purchases. Deal expected to boost agriculture, tech, and manufacturing sectors.

"It has brought a sense of relief to those who were concerned about the very high tariffs of 50 per cent - Dhruva Jaishankar"

Washington DC, February 5

Dhruva Jaishankar, the Executive Director of ORF America, said that the recent trade agreement between India and the United States has brought significant relief to the economic landscape.

Speaking exclusively to ANI, Jaishankar noted that the deal concludes a period of high trade tensions and sets a new path for bilateral commerce.

He highlighted that the announcement by US President Donald Trump to reduce Indian tariffs to 18 per cent is a central component of this breakthrough.

"It has brought a sense of relief to those who were concerned about the very high tariffs of 50 per cent that have been in place since September of last year and which now appear to go away," Jaishankar said during the interview.

Jaishankar explained that while the broad strokes of the agreement are public, the specific mechanics of the deal are still being finalized.

"We're still awaiting details on the sequencing and I think we should expect in the next few days a joint statement by the two governments that will outline next steps, including the technical details on how to proceed forward with this trade deal," he stated.

Earlier this week, US President Donald Trump announced a trade deal with India that slashes US tariffs on Indian goods to 18 per cent from 50 per cent in exchange for India halting Russian oil purchases and lowering trade barriers.

According to government sources, the upcoming joint statement is expected to be released this week to clarify the implementation process. This document will serve as the official roadmap for how both nations will phase in the new tariff structures.

The deal follows months of intense negotiations aimed at addressing market access issues and retaliatory duties that had hampered trade since late 2025. Experts believe the reduction in tariffs will specifically benefit sectors like agriculture, technology, and manufacturing by lowering the cost of doing business between the two largest democracies.

Industry leaders and market analysts have reacted positively to the news, describing the agreement as a balanced outcome for both economies. The consensus among experts is that the deal will stabilise the markets and encourage long-term investment. By moving away from the 50 per cent tariff wall, both nations are expected to see a surge in export volumes.

- ANI

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Reader Comments

S
Sarah B
Interesting to see the condition about halting Russian oil purchases. It's a strategic shift for India's energy policy. While good for trade with the US, I hope we have secured alternative, affordable energy sources. The devil is in the details they haven't released yet.
P
Priya S
Finally some good news for our farmers! Lower tariffs mean our mangoes, rice, and other agri-products can compete better in the US market. This deal has been long overdue. Let's see how quickly the benefits reach the ground level. 🤞
R
Rohit P
A balanced outcome, as the article says. But we must be cautious. The US gets a strategic win by pulling us away from Russian oil. We need to ensure this deal doesn't make us too dependent or compromise on other foreign policy interests. The joint statement will be key.
V
Vikram M
Great for the tech sector! Easier trade with the US means more collaboration, investment, and hopefully lower prices for software and hardware. This is a major boost for 'Make in India' in the technology space. Well negotiated!
K
Kavya N
While the tariff reduction is positive, I have a respectful criticism. The report mentions we are lowering our trade barriers too. I hope our government has protected sensitive sectors like dairy and small retail from being flooded by American goods. Self-reliance is important.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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