Trump Announces Trade Deal With India, Tariffs Cut To 18% From 25%

US President Donald Trump on Monday spoke with Prime Minister Narendra Modi, and announced a trade deal with India and a cut of tariffs from 25 percent to 18 percent. In a post on Truth Social, Trump said he spoke to PM Modi on several things including purchase of oil from US and Venezuela.

Trump said: "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!"

The call was flagged by Sergio Gor, the US ambassador-designate to India, who posted on social media: “President Trump just spoke with Prime Minister Modi. STAY TUNED…” (TS: 02 Feb, 09:29 ET).

It comes on the day when foreign minister Subramanyam Jaishankar is on his way to Washington to attend the Critical Minerals Ministerial convened by the U.S. Secretary of State Marco Rubio. During his stay in Washington, Jaishankar will also meet with other members of the Trump administration, the MEA said in a statement this morning. However, besides Rubio, who the other officials Jaishankar will meet is not known. The trade deal is expected to figure prominently during talks with US officials.

India appears to be on President Trump’s mind at the moment, as he has posted a photo of India Gate on Truth Social, his social media platform with the message: “India’s beautiful Triumphal Arch. Ours will be the greatest of them all!” he boasted.