Last Updated:
US President Donald Trump said on Monday that he and Prime Minister Narendra Modi had agreed to a new trade deal that would lower reciprocal tariffs between the two countries.
The United States and India have agreed to a trade deal that will reduce reciprocal tariffs, President Donald Trump announced on Monday. (IMAGE: REUTERS)
US President Donald Trump on Monday said the US and India have agreed to a trade deal that would lower reciprocal tariffs on India.
Announcing details of a phone conversation with Prime Minister Narendra Modi, Trump said Washington would reduce the tariff it had earlier imposed on Indian goods from 25 per cent to 18 per cent, effective immediately. He claimed that, in return, India would move to cut its own tariffs and non-tariff barriers against US products to “zero.” Follow LIVE Updates Here.
Trump made the remarks in a lengthy post on social media, describing Modi as “one of my greatest friends” and saying the two leaders had discussed trade, energy cooperation and the war in Ukraine.
“Out of friendship and respect for Prime Minister Modi, and as per his request, we agreed to a trade deal between the United States and India,” Trump wrote.
“He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” he added.
Later, Prime Minister Modi welcomed the tariff reduction in a social media post.
Earlier on Monday, US Ambassador to India Sergio Gor announced on X that Trump and PM Modi had spokenposting a photograph of the two leaders from Trump’s February 2020 visit to Hyderabad House in New Delhi with the message: “STAY TUNED…” The call was the first conversation between the two leaders this year.
Meanwhile, Gor also said that the Trump administration has now cut tariffs on Indian imports from 50% to 18% in an exclusive conversation with CNN-News18.
Trump further claimed that New Delhi will significantly increase purchases of American goods and services. He said the Indian side had agreed to “BUY AMERICAN” at a much higher level, including more than $500 billion worth of US energy, technology, agricultural products, coal and other exports.
“Our amazing relationship with India will be even stronger going forward,” Trump said, adding that he and Modi were “two people that get things done.”
In August, Trump imposed a 50 per cent tariff on Indian goods, including an additional 25 per cent duty linked to India’s continued purchase of Russian crude oil. India and the United States have since been engaged in protracted negotiations over trade and energy issues, which finally saw a breakthrough this year with the agreement to lower the tariffs imposed by Washington.
Washington D.C., United States of America (USA)
February 02, 2026, 22:32 IST
Read More
Source link
[ad_3]
