US President Donald Trump on Monday announced a new trade deal with India that will lower US reciprocal tariffs from 25% to 18%, saying the agreement will expand bilateral trade and strengthen ties.
"It was an Honor to speak with Prime Minister (Narendra) Modi, of India, this morning," Trump said on his US social media company Truth Social, describing him as "one of my greatest friends and, a Powerful and Respected Leader of his Country."
Saying that they have discussed a variety of topics from trade to ending the war in Ukraine, Trump said Modi "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!" he added.
The US president announced the lowering of reciprocal tariffs, and noted that "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%."
The US had first imposed a 25% tariff on Indian goods and later doubled it to 50% due to India's continued Russian oil imports.
Trump added that India will "move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO."
He said Modi is committed to "BUY AMERICAN," including "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," he said.
The announcement comes just a week after signing of the EU-India trade deal, dubbed as the "mother of all deals."
