US President Donald Trump announced that he agreed to a trade deal with India's Prime Minister Narendra Modi, where the US will lower tariffs on goods from India to 18% from 25%. In a post on Truth Social, Trump stated India will reduce trade barriers to zero and will stop buying Russian oil. An additional 25% tariff penalty imposed for Delhi's refusal to stop buying oil from Russia will be dropped. The announcement comes less than a week after India and the European Union announced a landmark trade deal that capped nearly two decades of on-off talks.
Modi expressed his happiness on X, stating he is 'delighted' about the agreement with the US. Discussing the trade deal and the Russia-Ukraine war in a morning call, Trump noted that Modi committed to purchasing much more oil from the US and potentially from Venezuela. Trump added that he agreed to the deal at Modi's request, aiming for zero tariffs on Indian goods while promising $500 billion worth of American products, including energy and technology.
This trade relationship has faced challenges, particularly after the US imposed hefty tariffs on Indian imports last year, coinciding with high penalties on oil purchases from Russia. A White House official confirmed that the newly struck deal will see no tariffs on designated goods, easing trade tensions.
Expressing gratitude to Donald Trump, Modi said the agreement could unlock immense cooperative opportunities between two of the world's largest democracies. Meanwhile, opinions are divided; while some anticipate a boost in US markets, critics warn that the ongoing tariffs still present a higher cost compared to previous arrangements.
Modi expressed his happiness on X, stating he is 'delighted' about the agreement with the US. Discussing the trade deal and the Russia-Ukraine war in a morning call, Trump noted that Modi committed to purchasing much more oil from the US and potentially from Venezuela. Trump added that he agreed to the deal at Modi's request, aiming for zero tariffs on Indian goods while promising $500 billion worth of American products, including energy and technology.
This trade relationship has faced challenges, particularly after the US imposed hefty tariffs on Indian imports last year, coinciding with high penalties on oil purchases from Russia. A White House official confirmed that the newly struck deal will see no tariffs on designated goods, easing trade tensions.
Expressing gratitude to Donald Trump, Modi said the agreement could unlock immense cooperative opportunities between two of the world's largest democracies. Meanwhile, opinions are divided; while some anticipate a boost in US markets, critics warn that the ongoing tariffs still present a higher cost compared to previous arrangements.
