New Delhi: US trade deal done: India tariffs now 18%
Prime Minister Narendra Modi announced on Monday that Indian goods will face a reduced US tariff of 18% after a phone conversation with President Donald Trump, who said the two sides had concluded a trade deal whereby New Delhi will cut its tariffs to zero and buy American goods, including energy, worth more than $500 billion.
The announcement concludes nearly 12 months of tense negotiations that saw bilateral ties nosedive and India being slapped with some of the highest tariffs in the world.
The first mention of the phone call came from US ambassador Sergio Gor in the form of a social media post at 9.16 pm, followed by a lengthy post by Trump on Truth Social more than an hour later, and then a social media post by the PM almost two hours later.
“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said on X.
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he added.
Modi’s post didn’t have any mention of a trade deal but Union minister Ashwini Vaishnaw confirmed on X that India and the US reached a trade deal, which he called a “win win”.
Earlier on Truth Social, Trump said that it was “an honour” to speak to Modi, calling him one of his “greatest friends”. He further said that both leaders “are two people that get things done” and that India agreed to stop buying Russian oil, and purchase $500 billion worth of US energy and tech.
“He is one of my greatest friends and a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine,” the US President said.
Trump added that India had “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela”, and would also move to reduce tariffs and non tariff barriers against the US to zero. Trump said that this would “help end the war in Ukraine”.
“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%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” the US President said.
“The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products,” Trump further added.
Modi also praised Trump. “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” he said.
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