US, India Agree to Pursue Trade Deal After Trump–Modi Phone Call
Trump says reciprocal duty to fall to 18%, claims India will slash tariff and non-tariff barriers
NEW DELHI, Feb 3: India and the United States have reached an agreement on a trade deal under which Washington will reduce reciprocal tariffs on Indian goods to 18 per cent from the existing 25 per cent, US President Donald Trump announced on Monday following a phone conversation with Prime Minister Narendra Modi.
Trump said the decision would take effect immediately, describing it as a gesture of friendship and respect for the Indian prime minister. He added that India has committed to moving ahead with eliminating tariff and non-tariff barriers on American products.
“There is a trade deal between the United States and India whereby we are lowering the reciprocal tariff from 25 per cent to 18 per cent,” Trump said in a social media post, attributing the move to discussions with Modi.
The US president further claimed that India has agreed to significantly increase purchases of American goods, including energy, technology, agricultural products, coal and other commodities, amounting to over USD 500 billion.
Trump said the understanding would further strengthen bilateral ties, praising his working relationship with Modi and calling it results oriented.
There was no immediate response from the Indian government on the announcement.
