The US President Donald Trump Announced to Reduce Reciprocal Tariffs on Indian Goods

By

Dr. Somita Chakraborty


On Monday, the US President Donald Trump announced that US is going to reduce tariff rates on Indian exports from 25% to 18%, and at the same time are going to scrap the additional 25% duty on selected items.

The announcement was immediately appreciated by Prime Minister Modi. The decision of the Trump Administration is going to serve as a great relief for Indian exports to the US.

Last year, the newly elected US administration suddenly changed their long-standing business approach towards India. For last few months, the Trump administration imposed high tariffs on Indian goods. During a Parliamentary discussion held on 29th January, 2026, while answering a question, Shri Kirti Vardhan Singh, the Minister of State (MEA), stated that the US imposed reciprocal tariffs on 31st July, 2025, and imposed additional 25% ad valorem duty selected Indian exports on 27th August, 2025. They also imposed sector specific tariffs on different products, such as, steel and aluminum, copper, automobiles etc. under section 232 of the US Trade Expansion Act.

Shri Singh also stated that several goods and services, for example, crude oil and petroleum products, precious metals critical minerals, IT services etc. have not been subject to tariffs. He also stated, ‘Based on 2024 trade data, an estimated USD 47.2 billion of India’s merchandise exports to the U.S., out of a total of about USD 86.4 billion, fall under categories subject to these additional tariffs.’ The announcement, therefore, brought a great relief for Indian exporters.

India and the US is working to conclude a fair, balanced and mutually beneficial multi-sector India-US Bilateral Trade Agreement.

For detail

QUESTION NO - 64 DIPLOMATIC AND ECONOMIC RELATION BETWEEN INDIA AND USA

https://www.mea.gov.in/rajya-sabha.htm?dtl/40625/QUESTION_NO__64_DIPLOMATIC_AND_ECONOMIC_RELATION_BETWEEN_INDIA_AND_USA

US to cut tariffs on India to 18%, India agrees to end Russian oil purchases

https://www.reuters.com/world/india/trump-says-agreed-trade-deal-with-india-2026-02-02/

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