Trump, Modi Seal Trade Deal: US Tariffs on India Cut to 18%
U.S. President Donald Trump announced on Monday a trade deal with India, reducing reciprocal tariffs from 25 per cent to 18 per cent, following a call with Prime Minister Narendra Modi. The move marks a thaw in previously tense trade relations.
PM Modi welcomed the development, tweeting, “Big thanks to President Trump on behalf of the 1.4 billion people of India. Made in India products will now attract a reduced tariff of 18 per cent.”
The deal also lifts a 25 per cent penalty tariff on India’s purchases of Russian oil, after New Delhi agreed to halt such imports. Trump called the agreement a gesture of “friendship and respect,” adding that India would reduce non-tariff barriers on U.S. goods and boost purchases of American energy, technology, and agricultural products.
U.S. envoy Sergio Gor described the announcement as a “successful outcome,” with formalities and paperwork expected to follow. Analysts say the deal strengthens bilateral trade ties and could benefit Indian exporters significantly.
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