In a possible resetting of bilateral economic and energy cooperation, US President Donald Trump announced on Monday that the US and India had agreed a trade accord after a phone discussion with Prime Minister Narendra Modi.
The US reciprocal duty on Indian imports would be reduced to 18% from 25% immediately, according to Trump’s statement on Truth Social. He went on to say that India will be buying a lot more energy, tech, and agricultural items from the US and will be working to lower tariffs and non-tariff barriers on US commodities.
In a post on X, Prime Minister Modi expressed his delight at the reduction of 18% in tariffs for “Made in India” products.
“When two major democracies and two major economies join forces, it’s good for our people and opens up a lot of possibilities for cooperation that benefits both of us,” Prime Minister Modi stated.
Trump asserted that the talks also touched upon geopolitical matters, such as the crisis between Russia and Ukraine. He also stated that India would increase its energy imports from the United States and decrease its reliance on Russian suppliers. The agreement, he claimed, will be effective right now.
This news is made public just before External Affairs Minister S. Jaishankar travels to the United States for the Critical Minerals Ministerial, wherein the two countries are reportedly continuing discussions to strengthen energy, supply chain, and economic ties.
