US, India Agree to Trade Deal: Tariffs Cut to 18%, Modi to Boost US Purchases

• US President Donald Trump announced a bilateral trade deal with India, cutting US tariffs on Indian goods from 25% to 18%.
• The revised tariff rate takes effect immediately, with India reportedly agreeing to reduce its tariffs and non-tariff barriers on US products to "zero".
• Trump claimed Prime Minister Modi agreed to stop buying Russian oil, increasing purchases from the US and potentially Venezuela.
• India will significantly increase purchases of American goods and services, including over $500 billion in US energy, technology, and agricultural products.
• The deal follows months of trade tensions and discussions between Trump and Modi also covered energy cooperation and the war in Ukraine.

Why It Matters: US and India strike a trade deal, lowering tariffs and boosting US exports, with India shifting energy purchases.