Trump, Modi Agree on Trade Deal
Previous efforts to reach a deal in 2025 had failed, leading Washington to impose a 50% tariff on Indian goods, with half of that rate linked to India’s continued purchases of Russian oil.
According to the US president, he recently held talks with Indian Prime Minister Narendra Modi, during which Modi allegedly committed to “stop buying Russian oil and to buy much more from the United States and potentially Venezuela.” Trump further claimed that this shift would help bring the conflict in Ukraine to an end.
“Out of friendship and respect for Prime Minister Modi, and as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reciprocal tariff, lowering it from 25% to 18%,” Trump said. “They will likewise move forward to reduce their tariff and non-tariff barriers against the United States to zero.”
In a separate statement, Modi welcomed the tariff reduction on Indian exports, saying, “Delighted that Made in India products will now have a reduced tariff of 18%.” He added, “Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
However, the Indian leader did not address claims about halting Russian oil imports, instead expressing support for Trump’s “efforts for peace.”
Trump also stated that Modi had agreed to significantly expand purchases of American goods, including “over $500 billion of US energy, technology, agricultural, coal, and many other products,” and to “buy American at a much higher level.”
Trade negotiations between the two countries had previously been slowed by India’s refusal to include dairy and agricultural products in the agreement, a stance New Delhi said was necessary to safeguard the livelihoods of its farmers.
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