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- India-US Trade Deal News Live Updates: India's industrial goods tariffs will go to 0% from 13.5%: US on trade deal
India-US Trade Deal News Live Updates: India's industrial goods tariffs will go to 0% from 13.5%: US on trade deal
The rupee also strengthened sharply. Forex dealers said the tariff cut improves India’s relative competitiveness and could revive foreign institutional investor (FII) inflows after a prolonged selling phase.
US President Donald Trump on Monday announced a long-awaited trade deal with New Delhi, cutting tariff rates on Indian exports from 25% to 18% and effectively scrapping the additional 25% punitive duty. Trump said the move followed India’s agreement to stop buying Russian oil.
In a social media post shortly after concluding a call with Prime Minister Narendra Modi, Trump said he was announcing the deal “out of friendship and respect for PM Modi and, as per his request, effective immediately”, adding that “our amazing relationship with India will be even stronger going forward”.
Prime Minister Narendra Modi confirmed the agreement minutes later, writing: “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi added, praising Trump’s leadership as “vital for global peace, stability, and prosperity” and reaffirming India’s full support for his peace efforts.
Trump later echoed the sentiment on social media, saying, “Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most.” Track TOI’s Live coverage for all the details and analyses:
"Stronger India-US economic ties will benefit our businesses and people. The India-US trade deal will create unprecedented opportunities for traders, strengthen supply chain resilience, and contribute to the long-term economic growth of both nations."
Piyush Goyal in a post on X
The United States and India have announced a major breakthrough in trade ties, with President Donald Trump and Prime Minister Narendra Modi agreeing to roll back steep tariffs and deepen economic cooperation. The understanding, revealed through statements by both leaders, signals a reset in a relationship that had been strained by punitive duties, market-access disputes and geopolitical tensions linked to Russia’s war in Ukraine.
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India will restrict crude oil purchases from Russia and limit imports only to cases where supplies are irreplaceable, as part of a broader understanding reached with the United States to secure lower trade tariffs, sources quoted by news agency PTI claimed.
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"Even a fifth-grader can understand that this trade deal is against India's interests. First, you said there will now be no tax on American goods entering India, meaning the tax has been reduced to zero. On the other hand, goods from India will be taxed at 18% in the United States. Please explain what kind of good deal this is. America is saying that if India stops buying oil from Russia, where we currently get almost forty per cent of our crude oil, we will suffer a loss of approximately seventy to eighty thousand crore rupees annually. Imagine what will happen to crores of Indian farmers if wheat, cotton, maize, milk, milk products, and dairy products start coming into India with zero tax. They will be on the verge of ruin and destruction. Where will these farmers go, the crores of farmers from Maharashtra, the cotton farmers from Gujarat, or the wheat farmers from Punjab? You have committed a crime that no previous government had committed."
AAP MP Sanjay Singh on India-US trade deal
"An effective tariff advantage of around 18% gives India a clear and measurable edge over several of its major export competitors to the U.S. In practical terms, this can translate into a 5–10% landed-cost advantage for Indian products, which is often decisive in large procurement and long-term sourcing decisions. When combined with India’s scale, skilled workforce, improving infrastructure, and regulatory alignment with global standards, this tariff differential positions India not just as a cost-competitive option, but as a reliable and strategic partner for U.S. businesses looking to diversify and strengthen their supply chains."
Dr Atul Chauhan, Indo -American Chamber of Commerce Board Member, Immediate Past President and Chancellor Amity University
While the announcement of India-US trade deal brought a welcome relief rally in domestic stock markets and cheered exporters, a lot still remains unknown about the key details of the trade agreement. The biggest takeaway from US President Donald Trump and Prime Minister Narendra Modi’s social posts is that the reciprocal tariff on Indian exports has been reduced to 18% effective immediately.
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"The India–US trade deal represents a balanced and forward-looking partnership delivering tangible gains for both economies. For India, it strengthens export competitiveness across engineering goods, pharmaceuticals, textiles, electronics, auto components, processed foods, and importantly, the education sector—supported by a favourable tariff environment and expanding manufacturing scale. For the United States, the agreement enhances supply-chain resilience, provides reliable sourcing from a trusted partner, and deepens collaboration in education, research, and skill development. Increased academic partnerships, student mobility, and industry-aligned skilling will help build a future-ready workforce for both nations. This is not a zero-sum arrangement, but a true win-win—aligning economic growth, talent development, and long-term strategic priorities of two leading democracies."
Dr. Atul Chauhan, Indo -American Chamber of Commerce Board Member, Immediate Past President and Chancellor Amity University
"This is not a deal, it's a surrender...I don't know what compulsion Prime Minister Modi has that he has mortgaged the interests of the farmers... The international market we had will now be gone... This is a surrender by the Modi government."
Congress MP Pramod Tiwari
"Prime Minister and US President have agreed, they have accepted the position which was given by either side. I think it is a matter of great happiness and satisfaction for countries, and also the people in those countries. I'm not restricting it only to the business community, but also to common men, because you know, negativity was going on for a long time for various reasons... Now we can look forward to a lot more activity happening. This is just the beginning. One should not be happy that it has been resolved, and so we can rest for the next 20 to 30 years... The first step has been taken. It will be an evolving relationship. There will be issues that will come on the way, and some difficulties will come. But they have to be addressed... It's a great occasion for the two countries and for our people. We can now move forward, get into some serious business and increase the trade volume."
Former Indian Ambassador Vidya Bhushan Soni
Speaking in an interview on CNBC Greer said, " We'll finish papering it, but we know the specifics, we know the details." He added that India is maintaining some protection around agricultural goods.
"The trade deal that India has signed with the United States is a positive initiative that will open up numerous opportunities for all Indians... It will pave the way for job creation in India... It will create opportunities for MSMEs and large industries in India... I am very surprised when opposition leaders ask why the tariff announcement came from there (the US)."
BJP MP Sudhanshu Trivedi
"This agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world. It will help India get technology from the US. It is not just a trade deal - it is a historic turning point that will reshape India-U.S. relations and accelerate our journey towards Viksit Bharat 2047."
Piyush Goyal
"PM Modi has always championed both the agriculture and dairy sectors, safeguarding their interests and working tirelessly to ensure a bright future and ample opportunities for the people in this sector. I am pleased that the entire country understands and appreciates this, and it resonates deeply with them... All those involved in India's exports, those connected to India's technology sector, those who want to bring modern technology to India or become part of global supply chains and global value chains, those who want to establish global capability centers, and those who want to invest in various sectors, especially labor-intensive ones that provide employment to millions of people – all are excited by this."
Piyush Goyal
“This is the best deal India has received. It is a deal for all of us, bringing positive signals for the bright future of our citizens. For months, our negotiating teams have maintained continuous dialogue with officials and ministers of the United States of America. This achievement has come under the leadership of Hon’ble Prime Minister Narendra Modi. I would like to thank him once again for his guidance and for handling this in the interest of the nation and the people. Friends, we all know, and the entire country knows, how the Prime Minister consistently cares for the welfare of our farmers, our brothers and sisters involved in animal husbandry, and the dairy sector. He protects their interests at every step. We also remember the large-scale trade deal, the Regional Comprehensive Economic Partnership (RCEP), which Congress had pushed India into in 2011. Rahul Gandhi committed a grave mistake in negotiating an FTA with China, but Hon’ble Prime Minister Modi protected the country by refusing to join the RCEP. That decision brought relief across the nation.”
Piyush Goyal
"PM Modi has always championed both the agriculture and dairy sectors, safeguarding their interests and working tirelessly to ensure a bright future and ample opportunities for the people in this sector. I am pleased that the entire country understands and appreciates this, and it resonates deeply with them. The sensitive factors of India's economy, particularly agriculture and dairy, have been protected. We have seen reports from across the country; there is widespread enthusiasm. All those involved in India's exports, those connected to India's technology sector, those who want to bring modern technology to India or become part of global supply chains and global value chains, those who want to establish global capability centers, and those who want to invest in various sectors, especially labor-intensive ones that provide employment to millions of people – all are excited by this."
Piyush Goyal on India-US trade deal
“The final details of negotiations and the joint statement by both countries will be completed shortly. The trade deal details will be shared soon,” he said.
"On behalf of everyone, I thank Prime Minister Narendra Modi and congratulate all of you, because this trade deal, which the Prime Minister finalised yesterday, will truly bring immense opportunities for India's economy, for all 140 crore citizens of India, for every poor person, farmer, fisherman, young man and woman living in the villages, our sisters, and women."
Piyush Goyal
Piyush Goyal responded to Opposition questions on why the United States announced the India–US trade deal before New Delhi, saying the tariff decision was taken by Washington and therefore communicated by US President Donald Trump.
Explaining the sequence, Goyal said the US had imposed reciprocal tariffs earlier and later decided to reduce them.
“The United States had imposed reciprocal tariffs, and when those were reduced from 50 per cent to 18 per cent, that information would naturally be given by Donald Trump,” he said.
"We all know that, keeping in mind the close and warm relationship our Prime Minister shares with his friend, President Trump, the trade deal finalised with the United States of America is the best deal India has secured compared to all our neighbours, surrounding countries, and competing nations. This deal has been achieved for all of you, for all of us. It brings positive signs for a bright future for the country. We also know that for months, our negotiating teams were in continuous dialogue and discussions with officials and ministers of the United States of America."
Piyush Goyal
"India has got a good deal with US because of personal relationship between PM Modi and US President Donald Trump"
Piyush Goyal
Criticising him, Goyal said: “Leaders with negative thinking like Rahul Gandhi are misleading the country. They have no concern for the nation’s progress.”
Highlighting the broad-based impact of the agreement, Goyal said: “The MSME sector, engineering sector, textile, gems and jewellery, leather goods and marine goods — all sectors are getting lots of opportunities with this trade deal.”
"Normally, we would have wanted to speak about this in Parliament, but we all witnessed that disgraceful scene. The way the opposition, especially the Congress party under the leadership of Rahul Gandhi and their allies the DMK, TMC, and Samajwadi Party, behaved so disgracefully in Parliament today. They even reached the Speaker's chair and insulted him. I strongly condemn the opposition and Rahul Gandhi, because of whom we have come here today to give you this information instead of speaking in Parliament."
Piyush Goyal
"Today every Indian across the country is thanking Prime Minister Narendra Modi that he has made a very good trade deal with the United States of America, which the countrymen have been waiting for for many months. Keeping the national interest and public interest at the forefront, a trade deal that will enhance the future of a strong India has been finalised last night under the leadership of Prime Minister Narendra Modi."
Piyush Goyal, Union minister of Commerce
“This is not a trade deal, it's tariff reduction, which is very good.”
Nirmala Sitharaman, Union minister of Finance
"The announcement to reduce punitive tariffs on Indian exports to the United States, along with the anticipated Bilateral Trade Agreement, represents a pivotal development with the potential to significantly accelerate India’s 2047 ambitions. The tariff reductions are expected to unlock substantial benefits for critical labor‑intensive sectors such as textiles, handicrafts, leather and footwear, and gems and jewelry, further complementing the favorable policy measures announced in Budget 2026. Coupled with the forthcoming FTAs with the United Kingdom and the European Union, these sectors could benefit from multi‑year structural tailwinds."
Naveen Aggarwal, Office Managing Partner – Delhi NCR and US-India Corridor Leader, KPMG in India
"India-US trade deal will further expand and deepen trade between two of the largest economies of the World. It will create more opportunities for our labour-intensive and manufacturing sectors in the US market and give impetus to mutually-beneficial collaboration in high and advanced technology sectors"
Arvind Shrivastava, Secretary, Department of Revenue, Ministry of Finance
Commerce Minister Piyush Goyal held a press conference today in which he suggested that the trade deal is in final stages of detailing. He added that a joint statement by India-US giving details of the trade pact will be issued soon.
“The final details of negotiations and the joint statement by both countries will be completed shortly. The trade deal details will be shared soon,” Goyal said.
