India-US trade deal slashes tariffs; seen lifting exports, market sentiment

U.S. President Donald Trump announced a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.



Trump said the deal involved higher Indian purchases of U.S. energy, coal, technology and farm products, and is the first phase of a broader pact to be negotiated later.



India will increase purchases of U.S. petroleum, defence equipment, electronics, pharmaceuticals, telecom products and aircraft with some farm market access also offered, Reuters reported, citing a government official who declined to be identified.



Although Trump said India would cut tariffs to zero, it is not yet clear which products will see zero duties or phased cuts, as in India's EU and UK trade deals.

U.S. Agriculture Secretary Brooke Rollins said in a social media post on X that the deal will boost American farm exports to India, lifting prices and "pumping cash into rural America."



In 2024, America's agricultural trade deficit with India was $1.3 billion, she said.