Overview
- President Donald Trump announced the reciprocal tariff on Indian exports would drop to 18% from 25% following a phone conversation with Prime Minister Narendra Modi.
- Modi thanked Trump and highlighted the lower duty for ‘Made in India’ goods, but he did not endorse U.S. statements about energy purchases or other conditions.
- Trump asserted that India would halt Russian oil purchases, reduce barriers on U.S. goods to zero, and buy more than $500 billion in American products, claims not independently confirmed.
- Multiple reports say the separate 25% penalty tied to Russian oil has been removed, yet no formal legal text has been published and full deal details have not been released.
- Indian ministers and exporters hailed the tariff relief and foresee gains for sectors such as textiles and seafood, while opposition leaders demanded transparency and raised sovereignty concerns after months of tariff escalations that had pushed some duties to 50%.