Image Source: X
India and the United States have reached a significant turning point in their trade relationship. US President Donald Trump has announced a reduction in reciprocal tariffs on Indian goods from 25 percent to 18 percent. Along with this, he claimed that an important trade agreement between the two countries has been finalized.
The announcement came after a telephone conversation between President Trump and Indian Prime Minister Narendra Modi.
Trump’s Announcement on Social Media
President Trump shared the update through a detailed post on his social media platform, Truth Social. In the post, he praised Prime Minister Modi, calling him a strong and respected leader, and highlighted the positive direction of India-US relations.
Trump stated that the discussion covered trade, energy cooperation, and major global issues.
Key Points Discussed During the Call on India-US Trade Deal
According to President Trump, the conversation led to agreement on several important matters, including:
- Reduction of US reciprocal tariffs on Indian goods from 25% to 18%.
- India’s decision to reduce oil purchases from Russia
- Increased energy imports from the United States and other partners
- Progress toward a broader India-US trade agreement
Trump also said that India will work toward reducing tariff and non-tariff barriers on American products.
Image Source: X
Also Read: India-US trade deal announced
Claim of $500 Billion US Product Purchases
President Trump stated that India has committed to purchasing more than $500 billion worth of US products. These purchases are expected to include sectors such as energy, technology, agriculture, coal, and other industries. He described this as a major step toward strengthening economic ties between the two nations.
Prime Minister Modi’s Response
Prime Minister Narendra Modi responded to Trump’s statement on the social media platform X. He said he was pleased to speak with the US President and welcomed the tariff reduction on “Made in India” products.
PM Modi described the decision as highly important for India’s 1.4 billion people and thanked President Trump for supporting stronger economic and trade cooperation.
Background of the Trade Agreement
Talks on the India-US trade agreement gained momentum in February last year when Prime Minister Modi visited Washington. During the meeting, both leaders agreed to fast-track the first phase of a bilateral trade deal.
However, negotiations slowed later after the Trump administration imposed higher tariffs on Indian goods, including additional penalties related to India’s purchase of Russian crude oil.
India’s Position Compared to Other Countries
The leaders conversation took place as India’s External Affairs Minister S. Jaishankar began a visit to the United States. According to officials, India now faces relatively lower US tariffs compared to other export-driven economies.
Currently, the US has imposed:
- 19% tariffs on Indonesia
- 20% tariffs on Vietnam and Bangladesh
- 34% tariffs on China
In comparison, India’s revised 18% tariff places it in a more competitive position.
Earlier Signs of the Trade Deal
In recent weeks, India’s commerce officials had indicated that negotiations were close to completion. Meetings between Commerce Minister Piyush Goyal and the US Trade Representative, followed by continuous discussions at the official level, had already signaled progress.
President Trump’s latest announcement confirms that the India-US trade deal is now very close to a formal declaration.
Also Read: US Cuts Tariffs on India to 18%, Boosting India-US Trade Relations
