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United States and India A trade deal has been struck and will immediately shift to lower levels tariff Mr. President, about each other’s merchandise. Donald Trump Announce.
As part of the deal, Indian Prime Minister Narendra Modi also agreed to buy American products “at a higher level,” Trump said in a statement. truth social post after a phone call with the Indian leader on Monday.
Modi also promised to “stop buying Russian oil and buy more oil from the United States and possibly Venezuela,” Trump said in the post.
Read Trump’s full statement:
I had the honor to speak with Prime Minister Narendra Modi of India this morning. He is one of my best friends and a strong and respected leader of his country. We talked about a lot of things, including trade and ending the war with Russia and Ukraine. He agreed to stop buying Russian oil and buy more from the United States and possibly Venezuela. This will help end the war currently going on in Ukraine, where thousands of people are dying every week! Out of friendship and respect for Prime Minister Modi, and at his request, we have agreed to a trade agreement between the United States and India, effective immediately, in which the United States will charge lower reciprocal tariffs, from 25% to 18%. They will also continue to reduce tariff and non-tariff barriers against the United States to zero. In addition to more than $500 billion worth of American energy, technology, agriculture, coal and many other products, the Prime Minister also pledged to “Buy American” at a higher level. Our amazing relationship with India will be even stronger in the future. Prime Minister Modi and I are two people who get things done, which is something that cannot be said for most people. Thank you for your attention to this matter!
Trade talks between the Trump and Modi administrations stalled last year over a number of thorny issues, including New Delhi’s continued reliance on Russian oil.
In August, Trump slapped Impose 25% tariff on India In response to these oil purchases – in addition to a 25% “reciprocal” tax on the country’s exports to the United States – that took effect earlier the same month.
In a post on Monday, Trump said the reciprocal tariff rate on India would be reduced to 18% “effective immediately.”
India “will likewise continue to reduce tariff and non-tariff barriers against the United States to zero,” Trump wrote.
Modi confirms U.S. tariff cuts in X post late Monday.
Modi wrote: “I am happy that tariffs on products made in India are now reduced by 18%. On behalf of the 1.4 billion people of India, I am very grateful to President Trump for this wonderful announcement.”
The Prime Minister wrote: “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks tremendous opportunities for mutually beneficial cooperation. President Trump’s leadership is critical to global peace, stability and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights.”
Trump’s announcement comes a week after India closed a factory. Major free trade agreements Relations with the EU, which Modi calls the “mother of all deals”.
Some analysts predict developments between Europe and India Can “ignite” New Delhi and Washington are seeking a bilateral agreement.
