India–US Trade Agreement Approved

India and the United States have reached a significant advancement in their trade relationship. US President Donald Trump announced that the United States has agreed to a trade deal with India. He also confirmed a reduction in retaliatory tariffs on Indian goods.

Tariff Reduction and Key Commitments

  • The announcement states that US tariffs on Indian products will decrease to 18 percent. Previously, the tariffs were set at 50 percent which included an additional 25 percent duty that applied to India's Russian oil purchases. The White House later confirmed that the extra tariffs have been removed.
  • President Trump stated that India has agreed to reduce tariffs on US goods to zero. He also said that India will stop importing oil from Russia and increase oil purchases from the United States and Venezuela.

Trump’s Statement After Call With Modi

  • President Trump spoke with Prime Minister Narendra Modi on Monday. He later posted the information on his social media platform Truth Social. He described Prime Minister Modi as a respected leader and a close partner.
  • Trump said the discussion covered trade, the Russia–Ukraine war, energy purchases, and broader cooperation. The United States accepted the trade agreement because Modi requested it according to him. Trump also stated that India plans to buy large quantities of American products. The total trade between the two nations will exceed $500 billion with fuel, technology, agricultural goods, coal, and other items. He said the relationship between the two countries will grow stronger.

Prime Minister Modi’s Response

  • Prime Minister Modi responded publicly to the announcement. He confirmed that a US tariff of 18 percent will now apply to Indian products. He called the decision positive and thanked President Trump on X, formerly Twitter.
  • Modi said cooperation between the world’s two largest democracies benefits people in both countries. He added that such cooperation creates new opportunities and supports global peace and stability. He expressed support for President Trump’s efforts and stated that India looks forward to strengthening the partnership further.