From iPhones to Pulses: These Items May Get Cheaper After India-US Trade Deal

Reduced tariffs under the India-US trade agreement are expected to ease prices for consumers while giving Indian exporters a major boost.

The long-pending India-US trade deal was finalised late Monday after a phone conversation between Prime Minister Narendra Modi and US President Donald Trump. Under the agreement, the United States has reduced reciprocal tariffs on Indian exports from 25 per cent to 18 per cent, a move being described as a significant reset in bilateral trade relations.

While the deal is expected to strengthen India’s export position globally, it is also likely to bring relief to Indian consumers through lower import duties on select American goods.

What could become cheaper in India

The reduction in import duties is expected to lower costs in several consumer-facing segments. Electronics and technology products such as laptops, smartphones, electronic gadgets and spare parts imported from the US may see price corrections. Home appliances, including washing machines and refrigerators, could also become more affordable if manufacturers pass on the duty benefits.

In the food segment, there is a possibility of reduced prices for certain agricultural imports from the US, including pulses, dairy products and processed foods, though the final impact will depend on domestic procurement and supply conditions.

Big push for Indian exporters

For Indian businesses, the deal opens a wider window in the US market. With tariffs reduced to 18 per cent, Indian goods gain a pricing edge over competitors such as China, Pakistan, Bangladesh and Vietnam, many of whom continue to face higher duties.

Textiles and garments are expected to benefit the most, with exporters anticipating higher demand for ‘Made in India’ apparel. The gems and jewellery sector is also likely to become more competitive, while engineering goods, chemicals and select manufacturing products could find expanded access in the US.

Industry estimates suggest Indian exports to the US could rise by 20–30 per cent in the coming months, potentially leading to higher production and job creation, particularly for small and medium enterprises.

Not everything gets cheaper

Despite the broad relief, some sectors remain outside the tariff benefits. Import duties on steel, aluminium and copper under the US ‘Section 232’ framework continue to remain high at around 50 per cent. The automobile sector has also received limited relief, with 25 per cent tariffs still applicable on certain auto components.

Strategic and economic implications

Apart from trade, the agreement carries geopolitical weight. According to US officials, additional tariffs linked to India’s purchase of Russian oil may be lifted if India fully halts such imports, a condition being viewed in the context of the Ukraine conflict.

Prime Minister Modi said the deal would give fresh momentum to ‘Made in India’ products, while President Trump described the decision as one taken in the spirit of friendship and mutual respect.

With immediate effect, the new tariff structure marks a shift in Asia’s export dynamics, positioning India as a more cost-competitive supplier in the US market while offering selective price relief to Indian consumers.