Washington/New Delhi: In a surprising turn, India and the United States have announced a landmark trade deal. President Donald Trump confirmed that the US will reduce tariffs on Indian goods from 25% to 18%, a move experts are hailing as a major diplomatic and economic victory for India.
Experts Praise India’s Negotiation Skills
According to analysts, India successfully leveraged global circumstances and strategic pressure points to secure favorable terms. US journalist Sadanand Dhume tweeted, “India’s negotiation to remove punitive US tariffs and secure better rates than competitors like Vietnam and Bangladesh is a significant diplomatic and economic win for the Modi government. This also marks a strong start for Sergio Gorr’s tenure as India’s ambassador.”
How Pressure Built on the US
Experts note that India’s trade deal with the European Union acted as a pressure point on Washington, ensuring the US did not fall behind in trade competitiveness. Additionally, America’s global conflicts, including tensions with Iran, prompted Washington to take calculated risks, ultimately agreeing to India’s tariff reduction.
Debate Over Russian Oil
President Trump also claimed that India has assured the US it would halt oil imports from Russia. While India has reduced imports since November 2025, US analyst Michael Kugelman expressed skepticism over the claim, stating that it is unclear whether India has fully agreed to stop Russian oil purchases. Nevertheless, these assurances, along with diplomatic efforts by Ambassador Gorr, likely facilitated the trade agreement.
President Trump’s Statement
Trump posted on Truth Social:
“Due to my friendship with Prime Minister Modi and his request, the United States has immediately reached a trade agreement with India. Under this deal, the US is reducing tariffs from 25% to 18%. Our relationship with India will continue to grow even stronger in the future.”
The deal is being widely seen as a strategic success for India, strengthening its position in global trade while reducing costs for Indian exporters.
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