US-India Trade Deal, Tariffs Cut

US President Donald Trump announced a trade deal with India, significantly reducing US tariffs on Indian goods from 50% to 18%. In exchange, India, led by Prime Minister Narendra Modi, committed to halting its purchases of Russian oil, lowering its own trade barriers against the United States, and increasing its imports of US energy, technology, and agricultural products by over $500 billion. This agreement follows months of tense negotiations and previous punitive tariffs imposed by the United States on India due to its Russian oil imports. The deal is expected to boost India's exports and improve its economic standing, which had been negatively affected by previous tariffs. While Indian companies like Infosys, Wipro, and HDFC Bank saw their shares rally, some US business groups, such as We Pay the Tariffs, expressed concern over the new 18% tariff rate on Indian imports, calling it a significant tax increase compared to 2024 levels. The deal also opens the possibility for India to purchase oil from Venezuela, following the US seizure of Venezuelan President Nicolás Maduro.