Trump and Modi Reach Trade Deal Reducing Tariffs

President Donald Trump confirmed a trade deal with India that will reduce tariffs on Indian products entering the United States from 25% to 18%. This announcement was welcomed by Indian Prime Minister Narendra Modi, who described the deal as a positive outcome.

The agreement comes after sustained pressure from the U.S. on India to cease its purchases of Russian oil, which Trump had warned could lead to a 25% tariff penalty on Indian goods. The U.S. had previously imposed a 26% reciprocal tariff on several Indian imports as part of a broader tariff strategy.

Following negotiations, the U.S. paused the tariff increase for 90 days, maintaining only 10% duties until a resolution was reached. The deal signifies a shift in U.S.-India relations, with implications for global trade dynamics, particularly concerning oil purchases from Russia.

The U.S. aims to leverage trade policies as a tool for political alignment, emphasizing that compliance with U.S. demands will result in trade relief.