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US–India trade deal
US President Donald Trump announced on Monday that he and Indian Prime Minister Narendra Modi have reached an agreement on a trade deal between the United States and India. Under this deal, the US will lower its reciprocal tariff from 25 per cent to 18 per cent.
US cuts tariffs to 18% after Trump–Modi trade agreement
In a post on his social media handle Truth Social, Trump referred to his conversation with the Indian Prime Minister earlier in the day. He said that PM Modi was one of his greatest friends and a powerful and respected leader of his country.
“It was an Honor to speak with Prime Minister Modi, of India, this morning. 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,” Trump said in his post.
The Indian government has not yet made any announcement about the trade deal with the United States, though Union Commerce Minister Piyush Goyal had openly congratulated PM Modi and President Trump for the agreement.
“Congratulations to Prime Minister @NarendraModi ji and President @RealDonaldTrump, as well as to the people of India and the United States, on the landmark trade agreement,” the Minister wrote on X. “This reflects the power of two like-minded, fair-trading democracies working together for shared prosperity.”
Trump announced that the new US–India trade deal is effective immediately and claimed that India will buy over $500 billion in US goods. He claimed that India will reduce tariffs and non-tariff barriers against the United States.
“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! 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%,” Trump added.
“They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most,” Trump added.
Prime Minister Modi on Monday said that it was wonderful to speak with his “dear friend President Trump” and shared that Made in India products will now have a reduced tariff of 18 per cent.
“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,” PM Modi said in a post on X.
“More evidence of the benefits of “Making haste slowly”,” remarked Anand Mahindra.
Industrialist Harsh Goenka said that, “First the Mother of all deals with EU, now the Father of all deals with US - great achievement by PM Modi government! Patience pays.”