US EditionTrump's Tariff Cut Sparks Relief in India Despite Scant Details
The tariff cut to 18% from 50% removes a 25% punitive surcharge and is expected to boost Indian exports and restore competitiveness in the US market, officials said.
- On February 3, 2026, Union Finance Minister Nirmala Sitharaman said India's exports will get a further boost and called the U.S. tariff cut `It is a good augury for them `.
- Following last year's punitive levies, Trump agreed to slash U.S. tariffs on Indian goods to 18% from 50% in exchange for India stopping Russian oil purchases, nullifying a 25% tariff.
- Labour-Intensive exporters including apparel, footwear and jewellery makers were sharply dented by the punitive 50 tariffs imposed in August, hitting sectors such as steel, aluminium, textiles and engineering goods, according to HSBC.
- The details of the deal are still awaited, Sitharaman said the full terms will be announced soon, and on implementation tariffs would align India with most Asian countries around 15-19 per cent.
- The agreement includes India buying an incremental USD 500 billion of U.S. energy, technology, agricultural and coal products over five years, despite USD 14 billion equity outflows by foreign investors since July 2025 onward.
15 Articles
15 Articles
India–US trade deal: Trump’s tariff cut to 18% augurs well for India’s exports, says FM Sitharaman
India-US trade deal: US President Trump has reduced tariffs on Indian goods from 50% to 18%. This trade deal is set to boost India's exports, according to Finance Minister Nirmala Sitharaman.
Times of India
The Economic TimesIndia's exports to get further boost: Nirmala Sitharaman on US tariff cut announcement
India's exports are poised for a significant boost following the US tariff cut announcement, according to Finance Minister Nirmala Sitharaman. She stated that the agreement, which lowers the reciprocal tariff on Indian goods to 18 percent, is a positive development. This, combined with access to new markets, is expected to drive export growth.
India's exports to get further boost: Sitharaman on US tariff cut announcement
New Delhi, Feb 3 (PTI) In a first comment by the government following the US tariff cut announcement, Finance Minister Nirmala Sitharaman on Tuesday said that India’s exports will get a further boost. In an interview with PTI Videos, Sitharaman said the tariff announcement, in which Indian exports to the US will attract a lower […]
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