Prime Minister Narendra Modi (L) and US President Donald Trump
Credit: PTI File Photo
United States President Donald Trump announced a landmark trade deal with India, late on Tuesday.
This announcement comes on the heels of heightened tensions between the two nations after the Trump administration slapped a whopping 25 per cent tariff on India for purchasing oil from Russia.
However, Tuesday's announcement is rolling-back this very order. According to the White House, the Trump administration is dropping the 25 per cent tariff imposed on Indian imports over its purchases of Russian oil, in addition to lowering a country-specific tariff to 18 per cent from 25 per cent.
"We are also dropping the 25 per cent tariff, given India's agreement to stop buying Russian oil," a White House official told Reuters.
US President Donald Trump announced the changes in a Truth Social post following a phone call with Prime Minister Narendra Modi, but did not explicitly address the 25 per cent tariff he imposed in August to pressure New Delhi to stop buying Russian oil.
He wrote, "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. 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%.
"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. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP"
PM Modi also took to his X (formerly Twitter) and thanked his, 'dear friend President Trump' for reducing tariffs.
He wrote, "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.
"When two large economies and the world’s largest democracies work together, it benefits our people 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."