US plans 18% tariff reduction on India in trade agreement

The United States and India agreed to ease trade tensions with a new deal that lowers tariffs and boosts the energy and agriculture sectors. 

President Donald Trump said the US will cut its reciprocal tariff on Indian goods from 25% to 18%.

In return, India will stop buying Russian oil and purchase more energy from the US, and possibly Venezuela.

India plans to reduce its own tariffs and non-tariff barriers to zero and buy $500 billion worth of American energy and agricultural products.

Trade between the two countries stayed strong despite past tariffs, with US imports from India reaching $22.1 billion last fall. Smartphone exports alone jumped by more than 300%, driven by rising production.