In a post today, U.S. President Donald J. Trump announced that the United States has agreed to a new trade agreement with India that will reduce reciprocal tariffs.
According to President Trump, the reciprocal tariffs that the United States imposes on India will be reduced from 25% to 18%.
In a message posted on social media platform Truth Social, President Trump said he had a heartwarming phone conversation with Indian Prime Minister Narendra Modi earlier in the day. President Trump described Modi as “one of my great friends” and a “strong and respected leader.”
President Trump said a number of topics were discussed during the meeting, including trade and the Russia-Ukraine war. In his message, President Trump said Prime Minister Modi agreed to halt purchases of Russian crude oil and that India would now buy more energy products from the United States and possibly Venezuela. President Trump claimed the move would “help end the war in Ukraine.”
President Trump announced that as part of the deal, the US would reduce tariffs on India from 25% to 18%. In return, India said it was willing to reduce tariffs and non-tariff barriers to the United States to zero.
In his message, the President also said that India will purchase more than $500 billion worth of American products. Regarding the bilateral relationship, President Trump said, “Mr. Modi and I are two people who will get results.”
The statement came amid ongoing trade tensions between the two countries. The US government had raised tariffs on imports from India to up to 50%, which had become a major source of tension in bilateral relations.
Trade talks between the United States and India have faced various challenges, but recent talks between the leaders are said to be making progress on the back of the Comprehensive Free Trade Agreement signed between India and the European Union in recent weeks.
*This is not investment advice.
