U.S.–India Trade Deal Sees Tariff Cuts, Ending Months of Tension

U.S. President Donald Trump announced on Monday that Washington and New Delhi have agreed to a significant trade deal that will slash U.S. tariffs on Indian goods from about 50% down to 18% in exchange for India lowering trade barriers and commitments on energy purchases. Trump made the announcement in a social media post after speaking with Prime Minister Narendra Modi, saying the pact will immediately cut duties and open possibilities for increased U.S.–India commerce.

The agreement comes after months of strained trade negotiations that saw tariffs rise to punitive levels last year when the U.S. imposed extra levies on Indian imports in response to New Delhi’s continued purchases of discounted Russian oil. Under the new deal, punitive tariffs have been rolled back and both sides pledged to deepen ties, with India agreeing to buy more U.S. energy, technology, agricultural products and potentially oil from other sources.

Pic Courtesy: google/ images are subject to copyright