India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.
Trump claimed India will move forward to reduce "tariffs and non tariff barriers" against the US to zero.
"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 per cent to 18 per cent," the US president said on social media.
India will "likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero", he said.
Trump said Modi also committed to "buy American" at a much higher level, in addition to over USD 500 billion dollars of US 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," he said.
Wonderful to speak with 'dear friend President Trump': PM Modi
Prime Minister Narendra Modi on Monday said it was wonderful to speak with his "dear friend President Trump" today and said when two large economies and the world's largest democracies work together, it benefits people of the two countries and unlocks immense opportunities for mutually beneficial cooperation.
In a post on X, PM Modi also said that President Trump's leadership is vital for global peace, stability, and prosperity and India fully supports his efforts for peace.
"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," he said.
"When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation," he added.
PM Modi said he looks forward to working closely with President Trump "to take our partnership to unprecedented heights".
In a post on his social media handle Truth Social, Trump referred to his conversation with Prime Minister Narendra Modi earlier in the day.
Trump said PM Modi was one of his greatest friends and a powerful and respected leader of his country.
The US President also said PM Modi and he are two people that get things done.
He claimed that the Prime Minister had agreed to "stop buying Russian Oil", and to buy much more from the United States.
The Indian government has for far not made any announcement about the trade deal with the United States. Details from the Government of India were still awaited at the time of writing the report.
"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," Trump said in his post.
"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%," he added.
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