US President Donald Trump on Monday announced a new trade deal with India featuring lower reciprocal tariffs and expanded market access, while demanding that New Delhi stop buying Russian oil and sharply increase imports of American goods. India has now confirmed the tariff reduction part of the deal, with Prime Minister Narendra Modi welcoming the move in a public statement after the call.
After a phone call on Monday, Trump and Prime Minister Modi announced the India-US trade deal. (AFP)In a social media post, PM Modi said he had an “amazing” conversation with Trump and thanked him for reducing tariffs on Made in India products to 18 percent. However, the Indian statement did not mention any commitment to stop Russian oil Purchases or reducing all tariff and non-tariff barriers to zero, as Trump has claimed.
India confirms tariff cuts after Trump-Modi callTrump said the US would cut reciprocal tariffs on Indian goods from 25 percent to 18 percent under a new trade deal agreed after his phone call with Modi. Shortly thereafter, Modi confirmed the tariff reduction in a post on social media.
“My dear friend is wonderful talking to the President Trump Happy today that Made in India products will now have 18% lower duty Many thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi wrote.
He added that cooperation between the two countries would unlock “enormous opportunities for mutually beneficial cooperation” and said that while Trump’s leadership was “vital for world peace, stability and prosperity”, India fully supported his efforts for peace.
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Modi said he looked forward to working closely with Trump to take the partnership to “unprecedented heights”.
Buy $500 billion, freeze Russian oil: Trump claimsIn his Truth Social post, Trump said that India has agreed to a comprehensive package beyond this tariff Cut He demanded that India reduce its tariff and non-tariff barriers against US goods to zero and pledge to buy more than $500 billion worth of US energy, technology, agricultural products, coal and other goods.
Trump also said that India had agreed to stop buying Russian oil and instead to buy more energy from the US and potentially more Venezuelalinked the move to efforts to end the Russia-Ukraine war.
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Although India has confirmed the tariff reduction, it has not publicly confirmed Trump’s claims regarding Russian oil purchases, zero tariffs and non-tariff barriers or a pledge to buy $500 billion.
India-US trade deal: What we know so farThe US will reduce reciprocal tariffs on Indian goods from 25% to 18%PM Modi confirmed the 18% duty rate in a public postTrump said the new US-India trade deal will take effect immediatelyTrump has claimed that India will buy more than $500 billion worth of US goodsTrump has claimed that India will reduce tariff and non-tariff barriers to zeroTrump has demanded that India stop buying Russian oil and shift purchases to the US and possibly VenezuelaPrime Minister Modi’s tweet confirms tariff relief but does not mention oil or purchase commitmentsIndia-US trade tensionsThe statement followed a social media post by the US ambassador to India saying that Trump had spoken to Modi and more details would follow. Trump also shared the coordinated post India Gate And a magazine cover photo of myself and Modi.
The announcement comes amid an earlier strain in Indo-US relations after Washington imposed 50 percent tariffs on India last year, with an additional 25 percent linked to Russian oil purchases, among other diplomatic disagreements.
