South Africa tour of India 2019
Trump and Modi Announce Major Trade Deal, Tariffs Reduced as India Realigns Energy Strategy
In a significant boost to bilateral relations, US President Donald Trump and Indian Prime Minister Narendra Modi on Monday announced a major United States–India trade agreement aimed at deepening economic cooperation between the world’s two largest democracies. The announcement followed a phone conversation between the two leaders and marks a reset in trade ties after months of tension.
President Trump revealed on his social media platform that the agreement includes an immediate reduction of US tariffs on Indian goods from 25 percent to 18 percent. In return, India has agreed to eliminate its tariffs and non-tariff barriers on American imports, a move expected to substantially expand US exports across multiple sectors, including energy, technology, agriculture and coal.
A key component of the agreement is India’s commitment to halt imports of Russian oil, a strategic shift that Trump said would support broader international efforts to end the war in Ukraine. The US President also highlighted India’s pledge to significantly increase purchases of American energy products, describing the deal as having the potential to generate up to $500 billion in additional US exports over time.
Prime Minister Modi welcomed the development, expressing gratitude for the tariff reduction on Indian products and noting that the move would benefit Indian manufacturers and exporters. In a public message, Modi said he was “delighted that Made in India products will now face a reduced tariff of 18 percent,” thanking President Trump on behalf of India’s 1.4 billion people.
Modi added that the agreement would take the India–US partnership to “unprecedented heights” and praised Trump’s leadership as important for global peace, stability and prosperity. Analysts believe the deal could boost investor confidence, strengthen supply chains and reshape energy and trade dynamics between the two fast-growing economies.
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