US reduces tariff on India to 18%: US President Donald Trump has announced a reduction in tariffs on goods imported from India from 25% to 18%. This fa ...read more

Trump India tariff cut: US President Donald Trump has announced that the reciprocal tariff on goods imported from India has been reduced from 25% to 18%. This significant decision was made following talks between Trump and Indian Prime Minister Narendra Modi. Trump has said that Modi is a good friend of his and wants to promote trade between the two countries.

Trump himself announced, what did he write on Truth?

Trump wrote on his social media platform, Truthout,

Now the US will charge lower tariffs on imports from India, and in return, India will gradually reduce its tariff and non-tariff barriers on goods imported from the US. Furthermore, he said, India can purchase over $500 billion worth of goods from the US, including energy, technology, and agricultural products.

PM Modi tweeted and wrote...

PM Modi tweeted on the US tariff reduction. He wrote, "It was great to speak to my dear friend, President Trump. I am delighted that the tariff on Made in India products has now been reduced to just 18%. On behalf of the 1.4 billion people of India, I thank President Trump very much for this wonderful announcement. When two large economies and the world's largest democracies work together, it benefits our people and opens up many great opportunities for both countries."

First 25% tariff imposed on India

India was previously slapped with a 25% tariff, which triggered a massive trade dispute in 2025 and made exports more expensive for many industries. This also strained India-US relations.

The new decision has raised hopes that export costs will be lowered and companies could receive relief amid the negative impact on trade. Analysts say the move could strengthen the growing economic partnership between the two countries, but the full implications will be revealed once it is implemented.

What is reciprocal tariff?

Reciprocal tariffs are a trade policy in which one country taxes the goods of another country in the same amount as the other country taxes its own goods. This is considered equitable trade, and Trump calls it fair trade. For example, if India were to impose a 100% tax, the United States could impose the same.

PC:Jagran