US President Donald Trump announced that he agreed to a trade deal with India's Prime Minister Narendra Modi, where the US will lower tariffs on goods from India to 18% from 25%. In a post on Truth Social, Trump said India will reduce trade barriers to zero and will also stop buying Russian oil. An additional 25% tariff penalty imposed for Delhi's refusal to stop buying oil from Russia will be dropped. The announcement comes less than a week after India and the European Union announced a landmark trade deal that capped nearly two decades of on-off talks. Modi said on social media that he is 'delighted' that an agreement with the US has been reached.
In the post, Trump shared details from a morning call with Modi, where they discussed both trade and the Russia-Ukraine conflict. 'He agreed to stop buying Russian oil, and to buy much more oil from the United States and, potentially, Venezuela,' Trump stated.
Additionally, Trump mentioned that at Modi's request, he immediately 'agreed to a trade deal' that would dramatically reduce tariffs and non-tariff barriers. Modi has committed to purchasing more than $500 billion worth of American goods, including energy, technology, and agriculture products.
The new trade relationship comes after a challenging period during which the US imposed 50% tariffs on various Indian goods, marking the highest rates for any Asian country. A White House official confirmed that the agreement will lead to the dropping of tariffs associated with Russian oil purchases and other tariffs being reduced to achieve the new rate of 18%.
Modi publicly expressed gratitude for the deal, stating, 'Big thanks to President Trump on behalf of the 1.4 billion people of India.' He emphasized the importance of cooperation between the world's largest democracies, stating that working together unlocks immense opportunities.
This trade deal shifts the narrative from the recent trade tensions and positions both nations for potentially strengthened economic collaboration amidst changing global alliances.
In the post, Trump shared details from a morning call with Modi, where they discussed both trade and the Russia-Ukraine conflict. 'He agreed to stop buying Russian oil, and to buy much more oil from the United States and, potentially, Venezuela,' Trump stated.
Additionally, Trump mentioned that at Modi's request, he immediately 'agreed to a trade deal' that would dramatically reduce tariffs and non-tariff barriers. Modi has committed to purchasing more than $500 billion worth of American goods, including energy, technology, and agriculture products.
The new trade relationship comes after a challenging period during which the US imposed 50% tariffs on various Indian goods, marking the highest rates for any Asian country. A White House official confirmed that the agreement will lead to the dropping of tariffs associated with Russian oil purchases and other tariffs being reduced to achieve the new rate of 18%.
Modi publicly expressed gratitude for the deal, stating, 'Big thanks to President Trump on behalf of the 1.4 billion people of India.' He emphasized the importance of cooperation between the world's largest democracies, stating that working together unlocks immense opportunities.
This trade deal shifts the narrative from the recent trade tensions and positions both nations for potentially strengthened economic collaboration amidst changing global alliances.
