The United States and India have reached a trade deal and will move immediately to lower tariffs on each other’s goods, President Donald Trump announced on Monday.
Trump said the agreement followed a phone call with Indian Prime Minister Narendra Modi and would reduce the U.S. “reciprocal tariff” on Indian goods from 25% to 18%. In return, India will cut its tariffs and non-tariff barriers on U.S. products, Trump said in a post on Truth Social.
According to Trump, Modi also agreed to significantly increase purchases of American goods and energy, including oil, technology, agriculture, and coal. Trump added that India committed to stop buying Russian oil and instead source more energy from the United States and potentially Venezuela, a move he said would help efforts to end the war in Ukraine.
While Trump said the deal would take effect immediately, the full text of the agreement has not been released, and it remains unclear whether the two sides have signed a formal document. The White House and the Office of the U.S. Trade Representative did not immediately provide further details.
Legal experts and some Democratic lawmakers have raised questions about whether Trump can finalize binding trade agreements without congressional approval. Supporters of the president argue that Congress has already given the executive branch broad authority to negotiate such deals.
Trade experts urged caution. Lori Mullins of Rogers & Brown Custom Brokers said businesses have learned not to react too quickly to Trump’s trade announcements, noting that changes become official only once they appear in the Federal Register.
Modi later confirmed the tariff reduction in a post on X, welcoming the move and calling it a boost for trade between the two countries. Trump’s announcement came just days after India finalized a major free trade agreement with the European Union, adding momentum to New Delhi’s global trade push.
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