NEW DELHI: The US and India have announced reaching a trade agreement after months of friction, with President Donald Trump saying that Prime Minister Narendra Modi had “agreed” to halt purchases of Russian oil.
In August, Trump accused India, which imports most of its crude oil, of funding Moscow’s war in Ukraine and subjected it to a combined tariff rate of about 50 percent on most of the exports.
Following a call with Modi on Monday, Trump took to social media to say that he would cut with immediate effect US levies on Indian goods to 18 percent after Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.”
At the same time, India, Trump wrote, would “reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” committing to buy “over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products.”
Modi confirmed the agreement on social media, saying: “Made in India products will now have a reduced tariff of 18 percent,” without commenting on Russian oil or duty-free imports of American goods.
