US–India Trade Breakthrough Resolves Tariff Dispute, Boosts Economic Ties
The United States and India have reached a trade agreement following protracted negotiations over tariffs and market access. The deal, confirmed days after a phone conversation between former President TRUMP and Prime Minister Modi, includes India's commitment to halt Russian oil purchases—a move with geopolitical implications for energy markets.
New Delhi will permit imports of most US industrial goods and select agricultural products, while Indian exports to America face an 18% reciprocal tariff. The centerpiece is India's pledge to purchase $500 billion in US energy, aerospace, technology, and commodities over five years—doubling current import volumes.
Both nations agreed to address non-tariff barriers, with India eliminating restrictive licensing procedures that long hampered commercial relations. The breakthrough follows stalled 2022 trade pact discussions, which foundered on India's resistance to opening its agricultural sector.
