Trump announces finalisation of India–US bilateral trade agreement

New Delhi/Washington: United States President Donald Trump on Monday announced that a bilateral trade agreement between India and the US has been finalised, marking a major development in economic ties between the two countries.

Making the announcement through a post on social media, Trump said India had agreed to stop purchasing crude oil from Russia and increase oil imports from Venezuela. In return, the United States would reduce the retaliatory tariff imposed on Indian goods from the current 25 per cent to 18 per cent.

“India will impose zero tariffs on goods imported from the United States,” Trump claimed in his statement, describing the deal as a significant breakthrough in trade relations.

After assuming office, Trump had imposed a 50 per cent tariff on several goods imported from India. Out of this, 25 per cent was in the form of retaliatory duties, while the remaining 25 per cent was imposed as a penalty for India continuing to purchase crude oil from Russia.

A senior White House official clarified that if India stops buying oil from Russia and agrees to levy zero tariffs on American products, the duties on Indian goods would be brought down from 50 per cent to 18 per cent.

The announcement came soon after Trump held a telephonic conversation with Prime Minister Narendra Modi on Monday. Describing the Indian Prime Minister as a close friend, Trump said he had agreed to the trade deal out of respect and friendship for Modi.

“Out of my friendship and respect for Prime Minister Modi, and at his request, I have agreed to this bilateral trade agreement with immediate effect,” Trump stated.

Prime Minister Modi later responded on X (formerly Twitter), welcoming the reduction in tariffs on Indian goods. “It is a matter of happiness that taxes imposed by the US on Indian-made products have now been reduced to 18 per cent,” he wrote.

Modi thanked Trump on behalf of 140 crore Indians for the decision but did not make any direct reference to the trade agreement in his post.

The development coincided with External Affairs Minister S. Jaishankar beginning his three-day visit to Washington, during which trade and strategic cooperation are expected to be key areas of discussion.

Meanwhile, the Congress party launched a sharp attack on the Prime Minister following Trump’s announcement. AICC General Secretary Jairam Ramesh alleged that Modi had surrendered to US pressure.

“It appears that President Trump has a strong hold over Prime Minister Modi. The people of India are learning about decisions of their own government only through the US President. This is not self-reliance, but Trump-reliance,” he remarked.

Trump further stated that India had committed to purchasing more American goods, including energy, technology, agricultural products and coal. “Prime Minister Modi has agreed to significantly increase imports from the United States,” he added.

The announcement signals a new phase in India–US trade relations, though details of the agreement and its long-term impact are yet to be officially disclosed.

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