US President Donald Trump announced that he has agreed on a new trade deal with Indian Prime Minister Narendra Modi, reducing the reciprocal tariff the United States charges India from 25% to 18%, according to Trump’s social media post and reports.
Trump said the two leaders discussed many topics on their call, including strengthening trade and ending the Ukraine war. He wrote that Modi agreed to stop buying Russian oil, which Trump says will help reduce funding for the ongoing conflict.
Under the new deal, India will also move to cut its tariffs and non-tariff trade barriers against US goods, eventually bringing many of them down to zero, Trump said.
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Trump claimed that India will also buy much more from the US, including energy, technology, agricultural products and other items worth over $500 billion, boosting American exports.
The tariff cut comes after months of tension when the United States had earlier raised tariffs on Indian goods, including doubling some to 50% over Indian purchases of Russian oil.
Trump described Modi as a friend and said the new deal will make the US-India business relationship even stronger going forward.