Donald Trump announces 50% tariff cut on India amid positive trade signals

New Delhi: Big news for India has come from the America. US President Donald Trump has announced that the tariffs imposed on India will be reduced by 50%, or half. Trump clarified that this step was taken due to India's reduced purchases of Russian oil. Previously, he had cited India's trade with Russia as the reason for the tariff increase. Why will the tariffs be reduced? Donald Trump explained that tariffs on India were raised due to the purchase of Russian oil. Now, India has reduced its purchases of Russian oil, so the US has decided to reduce the high tariffs imposed on India. Trump also said that there is a softening in the trade relations between the two countries and that tariffs on Indian products will soon be reduced. US Supreme Court Questions Trump’s Tariff Policy Amid Global Trade Concerns Why were the tariffs on India increased earlier? Trump initially imposed a 25% reciprocal tariff on India. Later, this was increased to 50%. Trump and his ministers alleged that India was financially supporting the Ukraine war by purchasing Russian oil and weapons. This move put a halt to the proposed India-US trade deal. India-US Trade Deal Update Negotiations on a trade deal between India and the US began in February 2025. Officials from both countries discussed a proposed Bilateral Trade Agreement (BTA). This process stalled after tariff increases. In August, tariffs on India were raised to 50%, stalling negotiations. Now, Trump's new announcement is likely to have a positive impact on the trade deal. ‘I want to be nice but…’: Trump on 155 per cent tariff threat to China Future Signals Experts believe that the tariff reduction could mark a new beginning in India-US trade relations. This will benefit Indian exporters and strengthen the economic partnership between the two countries.