India-US Trade Deal: America Reduces Tariffs, Claims Victory in Trade Negotiations

In a landmark development, India and the United States finalized a major trade deal on Monday, with the U.S. agreeing to cut tariffs imposed on Indian goods from 50% to 18%. Additionally, the 25% tariff on Russian oil was removed, leaving an effective U.S. tariff on India at just 18%.

U.S. President Donald Trump highlighted the deal on social media, noting that India has reportedly agreed to stop buying oil from Russia, potentially turning to Venezuela instead. Trump suggested that this step would contribute to ending the ongoing conflict in Ukraine, where thousands are losing their lives weekly.

Trump also claimed that Prime Minister Narendra Modi promised to reduce India’s tariffs and non-tariff barriers for U.S. goods to zero, giving America a perceived upper hand in the tariff game. Under the deal, the U.S. will retain an 18% tariff on Indian imports, while India would eliminate tariffs on American products, making it “18-0” in favor of the United States, according to analysts.

The U.S. president further asserted that India has committed to purchasing over $500 billion worth of American products, including energy, technology, agriculture, and coal, under the “Buy American” initiative. However, PM Modi has not officially confirmed these figures, leaving several details subject to further clarification.

The trade deal sparked intense debate in the Indian Parliament on Tuesday, with opposition leaders raising concerns about the impact on domestic agriculture. Rahul Gandhi criticized the government, alleging that farmers’ interests were compromised in favor of the U.S. trade benefits. The question remains whether India can fulfill the ambitious $500 billion trade target with the United States.