Trump Announces India Trade Deal, Cuts Tariffs To 18%
The US has reduced tariffs on Indian goods to 18% after fresh talks between President Donald Trump and PM Narendra Modi, marking a major trade and diplomatic win for India.
After months of uncertainty following trade talks between US President Donald Trump and Prime Minister Narendra Modi, India has received major relief. President Trump has announced a reduction in US tariffs on Indian goods, calling it a new trade deal between the two countries.
Earlier, after talks at the White House last year failed to reach an agreement, President Trump imposed heavy tariffs on India. First, a 25% reciprocal tariff was announced, accusing India of charging high duties on US products. Later, another 25% tariff was added because India continued buying oil from Russia, taking the total tariff to 50 percent.
Now, in a surprising move, President Trump announced that tariffs on Indian goods will be reduced. He said the US will completely remove the additional 25% tariff linked to India’s purchase of Russian oil. The remaining 25% reciprocal tariff will be cut to 18%. This means Indian products exported to the US will now face only an 18% tariff.
In a social media post, President Trump said he spoke to Prime Minister Modi and described him as a close friend and respected leader. He said they discussed trade and the Russia-Ukraine war. Trump claimed that India agreed to stop buying Russian oil and instead buy more oil from the US and possibly Venezuela. However, India has not officially confirmed this claim.
Trump also stated that India would reduce tariffs on US products to zero and buy goods worth $500 billion from the US, including energy, technology, agriculture, and coal. These statements have not yet been confirmed by the Indian government, and experts say such steps appear unlikely at this stage.
Prime Minister Modi welcomed the tariff cut and thanked President Trump, saying that Made in India products would benefit from the reduced duty. Home Minister Amit Shah and External Affairs Minister S Jaishankar also welcomed the announcement and congratulated both leaders.
Experts believe the recent major trade agreement between India and the European Union may have pushed the US to act quickly, making this deal a diplomatic win for India. The new tariff rate gives India an advantage over competitors like Pakistan, Bangladesh, and China in the US market.
In another related development, President Trump shared a photo of India Gate on social media, calling it a beautiful triumphal arch. He said the US plans to build an even bigger triumphal arch in Washington DC for the 250th anniversary of American independence, praising India while referring to his own project.
