U.S., India Reached Trade Deal, Lower Tariffs, U.S. President Says

Reuters

U.S. President Donald Trump and Indian Prime Minister Narendra Modi.

The U.S. and India have reached a trade deal and will immediately move to lower tariffs on each other’s goods, U.S. President Donald Trump announced on Monday.

Indian Prime Minister Narendra Modi also agreed to buy American products “at a much higher level” as part of the agreement, President Trump said in a Truth Social post following a call with the Indian leader.

PM Modi also committed to “stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” President Trump said in the post.

Trade talks between the President Trump and PM Modi administrations had stalled out last year amid a number of sticking points, including New Delhi’s continued reliance on Russian oil.

In August, President Trump slapped a 25% tariff on India in response to those oil purchases — on top of the 25% “reciprocal” levy on the country’s U.S.-bound goods that had taken effect earlier the same month.

President Trump said in Monday’s post that the reciprocal tariff rate on India will be reduced to 18%, “effective immediately.”

India “will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” President Trump wrote.

PM Modi confirmed the reduction in U.S. tariffs in an X post later Monday.

“Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi wrote.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for 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,” the prime minister wrote.

President Trump’s announcement came one week after India closed a major free trade agreement with the European Union, which Modi touted as the “mother of all deals.”

Source: CNBC



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