India to Reduce US Tariffs, Boost Trade Ties in 2026

After former US President Donald Trump’s Trump zero tariff claim, the White House released a detailed statement to explain the real terms of the India US trade agreement. The White House factsheet India US deal clarified that India has not agreed to make all tariffs zero immediately, but has committed to reducing or removing tariffs on selected US products.

According to the statement, the United States has agreed to lower its tariff on Indian goods from 25% to 18%. It also said that the US would remove an additional 25% tariff on Indian imports after India agreed to stop buying Russian oil. This update is an important part of the US India tariff update and reflects growing economic diplomacy between US India.

India will lower tariffs on many US industrial and farm products and buy over $500 billion worth of goods from the US. This will help strengthen trade ties between the two countries in 2026.

The White House added that India will remove its digital services tax and work with the US on fair digital trade rules. Both countries also plan to reduce non-tariff barriers and increase cooperation in technology and supply chains. This reflects the latest US trade policy India approach.

While Trump claimed tariffs would be reduced to zero, the tariff reduction statement shows it is a gradual process. Talks will continue to finalise an interim deal and move toward a full Bilateral Trade Agreement. This development is key international trade news, a major global tariff update, and important India US commerce news as trade negotiations continue.