US and India reach trade agreement: White House will cut duties to 18%
Duties on imports of goods from India into the U.S. will be reduced to 18%, and on U.S. goods in India - may be reduced to zero / Photo: White House
The United States and India have reached a deal on duties and will immediately begin reciprocal rate cuts, President Donald Trump said on Monday. "We have agreed to a trade agreement between the United States and India under which the United States will reduce duties from 25% to 18%. India, for its part, will begin reducing duties and non-tariff barriers against the United States to ZERO," Trump wrote.
Trump is also lifting an additional 25% duty on Indian goods, Bloomberg sources familiar with the situation told Bloomberg. The White House imposed it in August in response to India's purchases of Russian oil, thus raising the overall rate to 50%.
Indian Prime Minister Narendra Modi has pledged to "stop buying Russian oil and buy significantly more oil from the United States and possibly Venezuela," Trump said on the social media network Truth Social after a phone call with the Indian leader. Modi, in addition, agreed to increase his purchases of American products, the US president wrote.
Trade talks between the two administrations appeared to have stalled last year over a number of contentious issues, including New Delhi's continued dependence on Russian oil, CNBC recalls. At the same time, the two sides announced the current decision a week after India reached a major free trade agreement with the European Union, which Ma called "the mother of all deals," the channel points out.
This article was AI-translated and verified by a human editor
