India–USA Trade Agreement: Tariff reduced from 50% to 18%

US President Donald Trump recently announced that the US will reduce heavy tariffs on Indian goods.

This decision follows an understanding reached with Indian Prime Minister Narendra Modi.

Trump’s Telephonic Interaction With PM Modi

After speaking with PM Modi, Trump stated on social media that the US will reduce tariffs on Indian exports from 50% to 18%.

​He further clarified that India will no longer face the additional 25% penalty on imports of Russian oil.

​This is a major relief for Indian exporters.

India to Buy $500 Billion Worth of American Goods, Claims Trump

As Donald Trump claimed, India has agreed to reduce both tariff and non-tariff barriers on US products.

He stated that India will purchase more than $500 billion worth of US goods over an unspecified period.

​The items include coal, energy, agricultural products, technology, and many more. Prime Minister Narendra Modi has confirmed the tariff cut.

According to him, 'Made in India' products will now face 18% duty in the US. However, he did not share details about oil or farm imports.

What Do Experts Say?

According to experts, this development will boost India’s economic growth by up to 0.3%. It will also raise investor confidence.

​As markets react positively, Indian stock futures rise, and the rupee strengthens.

Even though challenges persist in agriculture and energy imports, the deal shows improving ties. It will benefit both economies in the long run.ong run.

How This Tariff Affects The Gold Price in India

The tariff reduction between India and the United States has directly influenced gold prices in India.

With trade agreements seeming favourable, the Indian rupee is now strengthening against the US dollar.

As the gold price is usually quoted in dollars, a robust rupee makes gold cheaper in India, driving its price down.

On the other hand, if the deal boosts investor confidence, it will increase demand for gold as a safe asset.

The overall effect depends on the market reaction to the trade deal.

Gold Prices in Major Cities

• Delhi - Rs 1,03,420
• Bengaluru - Rs 1,02,120
• Kolkata - Rs 1,01,910
• Mumbai - Rs 1,00,942

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