Washington — President Trump announced Monday that he and Indian Prime Minister Narendra Modi have agreed to a trade deal that would lower tariffs on Indian goods to 18 percent and end India’s purchases of Russian oil.
In a post to Truth SocialThe president said Modi also committed to buying American products at a much higher level and purchasing more than $500 billion worth of American energy, technology, agriculture, coal and other goods. The president said India would buy more oil from the United States and “potentially” from Venezuela.
“He agreed to stop buying Russian oil and buy significantly more from the United States and, potentially, Venezuela,” Mr. Trump wrote. “This will help end the war in Ukraine, which is happening right now, with thousands of people dying every week! Out of friendship and respect for Prime Minister Modi and, in accordance with his request, effective immediately, we have agreed to a U.S.-India trade deal, whereby the United States will impose a reduced reciprocal tariff, reducing it from 25% to 18%. It will also move forward to reduce its tariffs and non-tariff barriers against the United States. to ZERO.”
Mr. Trump imposed tariffs on Indian products by up to 50% last year, in a bid to pressure the country into buying Russian oil. India is one of Russia’s largest crude oil customers, and the country’s continued trade with Moscow during the war in Ukraine has strained U.S.-India relations.
Modi later confirmed the reduced duty rate on.
“I am delighted that Made in India products now enjoy a reduced customs duty of 18%,” Modi wrote. “Many thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two major economies and the world’s largest democracies work together, it benefits our people and opens up immense opportunities for mutually beneficial cooperation.”
India reached a historic trade deal with the European Union last week, with some leaders say that Mr. Trump’s trade policies prompted the two sides to finalize a deal that had been years in the making.
