The President of the United States, Donald Trump, on Monday, announced that India and the US had agreed to a bilateral trade deal and that there would be lower reciprocal tariffs between the two countries. The tariff will be reduced to 18 per cent from 25 per cent.
The major announcement came after the US President Donald Trump dialled the Prime Minister Narendra Modi on Monday evening. Providing details on what the call was about, Trump said that Washington would reduce its reciprocal tariff on Indian goods and charge a relatively lower duty. The reduced tariff comes into effect on an immediate basis.
"Agreed to a Trade Deal... whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%," Trump wrote on his social media platform, Truth Social.
What PM Modi, President Trump Spoke About
Elaborating on the conversation between him and Prime Minister Narendra Modi, Trump said that they both talked about 'many things, including Trade, and ending the War with Russia and Ukraine.'
He added that India '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.'
PM Modi Expresses Gratitude To President Trump
Prime Minister Narendra Modi expressed his delight over the reduced tariff on Indian products exported to America, saying, "Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement."
"Wonderful to speak with my dear friend, President Trump, today. Delighted that Made in India products will now have a reduced tariff of 18," PM Modi said.
ALSO READ: US President Donald Trump And PM Modi Hold Conversation, Says Ambassador Sergio Gor
Reacting to President Trump's announcement, American Ambassador Gor, in a new X post, said that Donald Trump truly considers PM Modi his 'great friend'.
"As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!" Gor in the post.