US President Donald Trump on Monday announced a trade deal between India and the United States after a phone call with Prime Minister Narendra Modi. Under the agreement, the US will lower tariffs on India from 25 per cent to 18 per cent.
In return, India has agreed to stop buying Russian oil, and will purchase $500 billion worth of US energy and tech, Trump said in a post on Truth Social.
PM Modi took to social media platform X, thanking US President Trump for the announcement, while also hailing the lowering of US tariffs.
“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.
The Prime Minister said that the “two large economies and the world’s largest democracies” working together would benefit the countries’ citizens and “unlocks immense opportunities for mutually beneficial cooperation.”
“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,” PM Modi added.,
Elaborating on the agreement, Trump said that India had “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela”, adding that this would “help end the war in Ukraine.”
He said that India would also move to reduce tariffs and non tariff barriers against the US to zero.
“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.
‘PM Modi and I get things done’: Trump
Regarding the conversation, Trump said that it was “an honour” to speak to PM Modi, calling him one of his “greatest friends”. He further said that both leaders “are two people that get things done.”
“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 in a post on Truth Social.
“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.
Trump’s announcement came after US Ambassador to India Sergio Gor took to social media platform X, informing that US President Donald Trump has spoken to Prime Minister Narendra Modi. “President Trump just spoke with Prime Minister Modi. STAY TUNED…” Gor said in the post.
Gor’s remark came an hour after Trump shared posts on Truth Social in connection to India and PM Modi. The US President posted a photo of the India Gate. “India’s beautiful Triumphal Arch. Ours will be the greatest of them all!”
In another, Trump shared a picture of both PM Modi and him on a magazine cover, which had called them “newsmakers of the year 2025.”
This comes even as External Affairs Minister S Jaishankar began a three-day visit to the US. The external affairs minister is in the US to attend the ministerial meeting on critical minerals supply chain.
India-US ties had taken a downturn after the US President imposed 50 per cent tariffs on India last year, including an additional 25 per cent on account of its purchase of Russian oil.
In addition to this, other issues including the US President’s claim of ending the India-Pakistan conflict, which has been strongly denied by New Delhi, also deteriorated relations.
www.hindustantimes.com
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