“Out of Friendship and Respect for Prime Minister Modi, We Have Agreed to a Trade Deal with India” — President Trump
Washington/New Delhi | The Global Journal
U.S. President Donald Trump has announced that the United States and India have reached a significant bilateral trade agreement, under which mutual tariffs have been reduced to 18 percent. The announcement came on Monday following a telephone conversation with Indian Prime Minister Narendra Modi.
President Trump stated that the 25 percent tariff previously imposed by the United States on Indian goods has been immediately lowered to 18 percent. After months of trade tensions, the agreement is being viewed as a major breakthrough in relations between the two countries.
Providing details of the phone call, Trump said,
“I was honored to speak with India’s Prime Minister Modi this morning. Out of friendship and mutual respect, and at his request, we have agreed to a trade deal between the United States and India.”
He further claimed that, as part of the agreement, India has agreed to reduce tariffs and non-tariff barriers on U.S. goods to “zero.” He also said that India will significantly increase its imports of American products and services in the future.
🛢️ Energy Cooperation and the Ukraine War
According to Trump, discussions extended beyond trade to include energy cooperation and the war in Ukraine. He claimed that Prime Minister Modi has agreed to stop purchasing oil from Russia and instead increase oil imports from the United States and potentially Venezuela. Trump believes this move could help bring an end to the Ukraine conflict.
📈 ‘Buy American’ Initiative
The U.S. president also said that under the “Buy American” policy, India has agreed to purchase a large volume of U.S. goods. This could include more than $500 billion worth of American exports across sectors such as energy, technology, agricultural products, coal, and others.
Analysts believe that the new trade agreement could play a key role in easing tensions that arose last year when the United States imposed higher tariffs over concerns about India’s energy ties with Russia. If fully implemented, the deal is expected to usher in a new phase in U.S.–India economic relations.
