The president said he spoke with Modi on Monday and had discussed “many things”, including trade, ending the war in Ukraine and the possibility of India buying more oil from the US and even Venezuela, the
Financial Times writes.
“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%,” Trump said in a Truth Social post on Monday.
Trump has accused India, which imports about 90 per cent of its crude oil, of helping fund Moscow’s war machine in Ukraine. In August, he slapped a 25 per cent punitive levy on India over its purchases of Russian oil on top of the 25 per cent “reciprocal” tariff, raising total duties to 50 per cent — among the highest levels in the world.
The president said on Monday that India would reduce its “Tariffs and Non Tariff Barriers” on the US to zero, while also committing to a “Buy American” policy worth “over $500 BILLION DOLLARS” of American goods, including energy, technology and agricultural products, the Financial Times adds.
“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,” Modi posted on X soon after Trump’s announcement.
