In a significant move, Prime Minister Narendra Modi revealed that ‘Made in India’ goods will now face a reduced tariff of 18 percent following a trade agreement with US President Donald Trump. Expressing delight over the decision, PM Modi thanked President Trump on behalf of India’s 1.4 billion citizens for this positive development. Emphasizing the benefits of collaboration between two major economies and the world’s largest democracies, PM Modi praised President Trump’s leadership for fostering global peace and prosperity.
Earlier, President Trump disclosed on Truth Social that the trade deal would promptly lower the US reciprocal tariff on Indian products from 25 percent to 18 percent, marking a substantial shift in bilateral trade relations with a focus on energy cooperation and broader geopolitical objectives. Trump mentioned discussions with PM Modi on various topics, including trade and efforts to resolve conflicts in regions like Russia and Ukraine. He highlighted Modi’s commitment to cease purchasing Russian oil and increase imports from the US and potentially Venezuela to aid in ending the ongoing conflict in Ukraine.
According to Trump, the trade pact will be effective immediately, with India moving towards reducing tariffs and non-tariff barriers against the US to zero. He also noted Modi’s pledge to significantly boost ‘BUY AMERICAN’ initiatives, with India planning to procure a wide range of American products, including energy, technology, agricultural goods, coal, and more.
