Cheers! Trump Cuts US Tariffs on Indian Goods

US President Donald Trump has agreed to reduce tariffs on Indian goods from 50 percent to 18 percent. The decision reportedly came after discussions with Prime Minister Narendra Modi. The tariff cut will take effect immediately and is being seen as a major relief for Indian exporters.

As part of the understanding, the earlier 25 percent reciprocal tariffs have been removed. Reports also suggest that India has reduced its purchase of Russian oil, which played a role in easing trade tensions between the two countries. In return, India is expected to increase imports of American goods worth over 500 billion dollars, including agriculture products, technology and energy.

Prime Minister Modi welcomed the move and said the reduced 18 percent tariff on Made in India products is positive for Indian businesses. The agreement comes after months of trade tensions between the two nations. Last year, the US had sharply increased tariffs on Indian imports, putting pressure on trade relations.

India is one of the world’s largest oil importers and depends heavily on imports to meet its energy needs. After the Russia Ukraine war began in 2022, India increased imports of discounted Russian oil. However, recent data shows that these purchases have gradually reduced.

Experts believe the tariff cut will support Indian exports and boost market sentiment. While this may not be a full trade agreement, it is seen as an important step towards improving India US trade ties.

At the same time, India has also signed a major trade agreement with the European Union after long negotiations. These developments are expected to strengthen India’s global trade position and support economic growth.