US President Donald Trump announced on Monday February 2 a reduction in US customs duties on Indian products after India agreed to suspend its purchases of Russian oil.
It marks a victory for the Trump administration, which has for years pressured its allies to economically isolate Russia over its war in Ukraine.
In his statement, Trump announced an 18% reduction in tariffs from a combined rate of 50%.
In exchange, Indian Prime Minister Narendra Modi agreed to stop buying Russian crude oil.
On his Truth Social platform, Trump wrote: “This will help end the war in Ukraine. »
Additionally, he said India would reduce its import duties on US goods by 0% and purchase $500 billion worth of US goods.
The Indian prime minister also exchanged remarks on social media, calling Trump’s leadership “viral for world peace” and sharing his deep desire to take India-US relations to “unprecedented heights”.
Previously, the two countries had months of tense relations over the issue.
Last summer, Trump announced 25% tariffs on Indian goods, citing unbalanced trade relations and India’s refusal to stop imports of Russian oil.
In August, Trump imposed additional 25% tariffs to punish India for its continued energy purchases from Russia.
The U.S.-India deal comes days after the European Union struck a free trade deal with India, highlighting a significant shift in trade partnerships globally.
