US to reduce reciprocal tariffs on India to 18%: Trump

US President Donald Trump on Monday said he spoke to Prime Minister Narendra Modi and added that  India and US have agreed for a trade deal with immediate effect, whereby the US will charge reduced reciprocal tariffs lowering it to 18 per cent from 25 per cent.

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Both countries will move forward to reduce their tariffs and non tariff barriers against the United States to Zero, Trump said.

The Indian Prime Minister also committed to “Buy Amercian”, at a much higher level, in addition to USD 500 billion dollars of US Energy, agricultural, Coal and many other products, Trump said.

“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done, that cannot be said for most,” Trump added.

Trump said Modi agreed to stop buying Russian oil and to buy much from the US and potentially Venezuela. “This will help end the war in Ukraine,” he said.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said in a post on X.

When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation, he said.

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, Modi added.

Earlier, US had levied a 50 per cent tariff on India (with 25 per cent being imposed in August as punishment for buying Russian oil). Now the tariff drops to 18 per cent.

 

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