India and the US have reached a commerce settlement after months of negotiations, in accordance with social media posts from U.S. President Donald Trump and Indian Prime Minister Narendra Modi on Monday.
Trump first announced the deal on Fact Social with a flurry of provisions, together with that India had agreed to “cease shopping for Russian Oil, and to purchase far more from the US and, probably, Venezuela.” India’s continued purchases of Russian oil after the start of the battle in Ukraine have lengthy been a sore level for Washington and for Trump particularly, with the U.S. president slapping a further 25 % tariff on Indian items over these oil purchases. Since encountering strain from the White Home in current months, New Delhi had already been decreasing its purchases of Russian crude. Trump’s push for India to purchase extra from Venezuela displays not solely his need to faucet into the South American nation’s oil market—after he ordered the seize of Venezuelan chief Nicolás Maduro—but additionally to make sure world crude costs keep comparatively low.
India and the US have reached a commerce settlement after months of negotiations, in accordance with social media posts from U.S. President Donald Trump and Indian Prime Minister Narendra Modi on Monday.
Trump first announced the deal on Fact Social with a flurry of provisions, together with that India had agreed to “cease shopping for Russian Oil, and to purchase far more from the US and, probably, Venezuela.” India’s continued purchases of Russian oil after the start of the battle in Ukraine have lengthy been a sore level for Washington and for Trump particularly, with the U.S. president slapping a further 25 % tariff on Indian items over these oil purchases. Since encountering strain from the White Home in current months, New Delhi had already been decreasing its purchases of Russian crude. Trump’s push for India to purchase extra from Venezuela displays not solely his need to faucet into the South American nation’s oil market—after he ordered the seize of Venezuelan chief Nicolás Maduro—but additionally to make sure world crude costs keep comparatively low.
Trump mentioned Modi had agreed to “BUY AMERICAN” by investing greater than $500 billion in U.S. industries resembling agriculture, expertise, and power, though there are at present no additional particulars on the timeline for such a deal. In return, Trump wrote, Indian items coming into the US would face a lowered 18 % tariff.
Much less clear is Trump’s further declare that India will “transfer ahead to scale back their Tariffs and Non Tariff Limitations towards the US, to ZERO.” Trump has beforehand slammed India’s protectionist insurance policies and excessive tariffs, with New Delhi traditionally reluctant to scale back market limitations in delicate sectors resembling agriculture.
Modi’s personal social media post, on X, was extra circumspect, solely mentioning the lowered 18 % tariff and hailing the “immense alternatives for mutually helpful cooperation” with out sharing additional particulars. The Indian Embassy in Washington didn’t instantly reply to a request for touch upon the phrases of the deal and the tariff reductions India had agreed to.
The Modi authorities has clinched a number of commerce agreements with Western companions in current months, together with a free trade agreement with the UK final July, adopted by a similar pact with New Zealand in December and one other one with the European Union only a week in the past that had been within the works for practically 20 years.
