WASHINGTON/NEW DELHI: US President Donald Trump on Monday announced a trade deal with India that slashes US tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.
Trump announced the deal on social media following a call with Indian Prime Minister Narendra Modi, noting that India would now buy oil from the US and potentially Venezuela.
A White House official told Reuters that the US was rescinding a punitive 25% duty on all imports from India over its purchases of Russian oil that had stacked on top of a 25% “reciprocal” tariff rate.
US-listed shares of major Indian companies rallied on the news. IT consulting firm Infosys closed 4.3% higher, consultancy Wipro rose 6.8%, HDFC Bank gained 4.4 percent and the iShares MSCI India exchange-traded fund rallied 3%.
Trump’s announcement added to positive sentiment over semiconductor makers and artificial intelligence, lifting major indexes into positive territory on the day.
