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US tariffs on Indian goods have been cut to 18% from 50%, Union Minister Piyush Goyal confirmed, calling the India–US trade agreement a major win for national interest and exporters after last year’s sharp duty hike.
US tariffs on Indian goods reduced to 18%
New Delhi: Union Commerce and Industry Minister Piyush Goyal on Tuesday said that the United States has reduced tariffs on Indian goods to 18 per cent from 50 per cent, following the conclusion of a new India-US trade agreement. The move marks a significant easing of trade restrictions and is expected to provide a boost to Indian exporters and industry.
Goyal said the agreement was finalised with India’s national and public interest as the top priority, describing it as a major step towards strengthening the country’s economic future.
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According to the minister, the newly announced trade agreement is the most favourable deal the United States has concluded with any of India’s neighbouring countries. He credited Prime Minister Narendra Modi’s personal rapport with US President Donald Trump for helping secure the outcome, stating that sustained engagement at the highest level played a crucial role in the negotiations.
Addressing the media on #IndiaUSTradeDeal. https://t.co/2l5j8W4cUc
— Piyush Goyal (@PiyushGoyal) February 3, 2026
Goyal added that the tariff reduction reflects India’s growing economic stature and its ability to negotiate from a position of strength on the global stage.
The confirmation of lower tariffs comes as a major turnaround from last year, when Indian goods were subjected to some of the highest import duties imposed by the United States. At the time, Washington had doubled tariffs to 50 per cent, citing concerns over India’s continued purchases of discounted Russian crude oil.
Those elevated duties had impacted several export-oriented sectors and raised concerns among businesses dependent on the US market. The reduction to 18 per cent is expected to restore competitiveness for Indian products and ease cost pressures for exporters.
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Describing the agreement as long-awaited, Goyal said it would unlock significant opportunities for India’s economy and industry. Lower tariffs are expected to support export growth, improve trade flows and enhance confidence among investors at a time of global economic uncertainty.
The minister also highlighted that the deal would benefit a wide range of sectors by improving market access and reducing trade barriers that had previously constrained growth.
The tariff reduction is being viewed as a key step in strengthening India–US economic relations. Officials believe the agreement will pave the way for deeper cooperation and a more balanced trade partnership between the two countries in the coming years.
