Trump Reduces Reciprocal Tariff Rate on Indian Imports
The tariff reduction marks a significant shift in bilateral economic relations, with the levy dropping from 25 percent to 18 percent—a seven-percentage-point decrease that takes effect immediately.
In a social media statement, Trump detailed the arrangement: "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%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO."
New Delhi has committed to eliminating its own tariffs and non-tariff barriers against American goods entirely, according to the announcement.
The agreement extends beyond tariff adjustments. Trump revealed that Prime Minister Modi pledged substantial purchases of U.S.-made products: "The Prime Minister also committed to 'BUY AMERICAN,' at a much higher level, in addition to over 500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products."
Energy policy featured prominently in the negotiations. Modi has consented to "stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," Trump stated.
The deal comes after Trump had imposed dual 25-percent tariffs on India—one characterized as "reciprocal" and another levied last year in response to India's procurement of Russian oil.
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