NEW DELHI, Feb 2: The United States has agreed to reduce the reciprocal tariff on India from 25% to 18%, US President Donald Trump said on Monday.
Washington had slapped 25% import tax on Indian goods as part of its Liberation Day tariffs last year, and an additional 25% for India importing Russian oil, making India among the highest tariffed countries. Trump announced the deal and the lowering of tariffs in a statement on his Truth Social handle. He wrote:
“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He 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! 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.
“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. 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. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP
(Manas Dasgupta)