India, Feb. 4 -- US President Donald Trump has said that India and the US have agreed on a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent.

The announcement is important as the US has imposed a steep 50 per cent tariffs on Indian goods entering American markets from August 27, 2025. Here is a list of key pointers to explain the announcement:

Tariff definition: These are customs or import duties which a country imposes on goods bought from other nations. An importer has to pay this duty to the Government. Normally, companies pass on these taxes to end users or consumers.Import duty makes goods expensive in the importing country. Besides, a few other factors a...