India–US trade deal: US cuts tariffs to 18%, India eyes zero trade barriers
Trump says Modi agreed to halt Russian oil buys &d boost purchases from the US and Venezuela
A file image of PM Modi with US President Donald Trump. (Photo:X)
New Delhi, Feb 3: India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18% from current 25 per cent, US President Donald Trump said after a phone conversation with Prime Minister Narendra Modi, on Monday.
"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 reduced reciprocal tariff, lowering it from 25% to 18%," the US president said on social media.
Trump also added that India will move forward to reduce "tariffs and non tariff barriers" against the US to zero, adding New Delhi would buy American goods, including energy, worth more than USD 500 billion.
Prime Minister Modi said he is delighted that "Made in India products will now have a reduced tariff of 18%".
"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," Modi said.
Modi said when two large economies and the world's largest democracies work together, it benefits the 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," he said in a social media post.
Modi noted that he looked forward to working closely with Trump to take the bilateral partnership to unprecedented heights, without mentioning many of the other issues that figured in Trump's post on social media.
Trump said Modi and he also discussed ending the war between Russia and Ukraine. "He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," the US president said.
"This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week," Trump said.
PTI