In a significant diplomatic development, former US President Donald Trump has announced a comprehensive trade agreement with India that substantially reduces tariffs on Indian goods. The breakthrough comes after Indian Prime Minister Narendra Modi committed to halting purchases of Russian petroleum products.
The agreement reverses previously imposed tariffs that had created substantial trade friction between the two nations. President Trump had initially levied a 25 percent tariff on Indian imports, subsequently adding another 25 percent penalty due to India’s continued acquisition of Russian oil, creating a combined tariff burden of 50 percent.
Under the new arrangement, the additional 25 percent surcharge has been completely eliminated, while the base tariff has been reduced from 25 to 18 percent. The arrangement represents a strategic realignment of India’s energy procurement policies, with commitments to source petroleum from the United States and Venezuela instead of Russia.
Prime Minister Modi expressed enthusiasm about the agreement through a social media post, characterizing Trump’s leadership as “vital for global peace, stability, and prosperity.” The Indian leader further indicated his intention to collaborate closely with Trump to elevate bilateral relations to “unprecedented heights.
Additional components of the agreement include India’s commitment to gradually eliminate import taxes on American goods and purchase approximately $500 billion worth of US products, signaling a substantial expansion of trade relations between the two democratic nations.