Surprise trade deal cuts duties, revives economic ties, and offers relief to India’s economy
U.S. President Donald Trump and Indian Prime Minister Narendra Modi have taken a major step toward repairing strained relations with a surprise agreement to slash tariffs, signaling a reset in U.S.–India trade ties. The deal comes after years of friction and is being seen as a timely boost for India’s economy amid global uncertainty.
The agreement focuses on reducing duties across key sectors, including agriculture and industrial goods, to restore confidence and encourage two-way trade. Officials from both countries described the move as a trust-building measure that reopens the door to closer economic cooperation.
For India, lower U.S. tariffs are expected to support exports, strengthen the manufacturing sector, and improve investor sentiment. The deal is also seen as helping New Delhi stabilize growth and protect jobs linked to international trade.
From Washington’s side, the agreement aligns with President Trump’s push for “fair and reciprocal” trade, giving American farmers and businesses improved access to the Indian market.
Analysts say the tariff cuts could pave the way for broader negotiations and mark a strategic reset in one of the world’s most important bilateral relationships, blending economic interests with long-term geopolitical cooperation.
