US and India Reach Major Trade Deal
According to international news agencies, President Trump stated that a mutual understanding has been achieved with India under which the US government will reduce retaliatory tariffs on Indian goods from 25 percent to 18 percent.
In return, India has agreed to reduce its tariffs and non-tariff barriers on American goods to zero, allowing greater access for US products in the Indian market.
President Trump also revealed that India has agreed to halt the purchase of Russian oil. Instead, India will now be permitted to buy more oil from the United States and potentially Venezuela, signaling a major shift in its energy policy.
He further stated that Indian Prime Minister Narendra Modi has committed to purchasing over $500 billion worth of American energy, technology, agricultural, and other products, a move expected to significantly boost US exports and strengthen economic ties between the two countries.
It is noteworthy that despite European and American sanctions imposed on Russia following the Ukraine war, India had continued purchasing Russian oil at discounted rates. In response to repeated US warnings, India maintained that the issue was an internal matter and pointed out that the United States itself also buys petroleum products from Russia.
President Trump had previously expressed strong displeasure over India’s stance and kept pressure on New Delhi by increasing tariffs, which ultimately led to the current trade agreement.