Big news out of the US for India—President Trump just announced he’s cutting tariffs on Indian goods in half. He said the US hiked up those tariffs in the first place because India was buying so much Russian oil. But now that India’s scaled back on those imports, Trump says it’s time to ease up.
Here’s why the US is slashing tariffs
Trump put it pretty bluntly. India used to rely heavily on Russian oil, so the US hit back with steep tariffs. Now, with India pulling back on those purchases, the US feels comfortable dropping the tariff rates. Trump’s been hinting for a while that trade relations with India might be softening, and now he’s saying a trade deal is closer than ever.
Trump originally slapped a 25 percent reciprocal tariff on Indian products, then suddenly doubled it to 50 percent. His reasoning? India’s deals with Russia—especially buying oil and arms—were, according to Trump, helping to fund Putin’s war in Ukraine. He and his team didn’t hold back in criticizing India over those purchases.
On the trade deal front
The two countries kicked off formal trade talks in February 2025, aiming for a bilateral trade agreement. But once the US doubled down on tariffs, those talks basically hit pause. They’d already made it through five rounds of negotiations before the hike. Then, in August, with tariffs up to 50 percent, everything stalled.
Now, there’s finally some good news
With tariffs coming down, both sides look ready to get back to the table. This gives Indian exporters some much-needed relief and hints that the two countries might actually wrap up a trade deal soon. It’s a clear sign that things are warming up between India and the US after months of tension.
