Sanatan Prabhat > Post Type > News > International News > US reduces import duty on India from 50% to 18%

US reduces import duty on India from 50% to 18%

  • India and the US finally reach a trade agreement

  • Trump claims India will stop buying Russian oil; India maintains silence

New Delhi – The trade agreement that had been pending for several months between India and the United States has finally been concluded. US President Donald Trump shared this information via social media. Subsequently, Prime Minister Narendra Modi also announced the development. Due to India purchasing crude oil from Russia, the United States had imposed a 50% import duty on India. Under the new agreement, this duty has been reduced to 18%. Trump stated that “India will move forward to reduce tariffs on US exports to zero.” President Trump spoke with Prime Minister Narendra Modi over the phone on the morning of February 2. Later that night, around 10:30 p.m., Trump announced the trade deal on social media. Trump claimed that Prime Minister Modi has agreed to stop buying oil from Russia and instead purchase more oil from the United States. However, Prime Minister Modi’s social media post made no such mention, leaving ambiguity in this matter.

Not 43%, but only 18% duty

Initially, the US imposed a 25% duty on India and later added another 25% because India was buying oil from Russia, bringing the total to 50%. The White House clarified that the US has now removed 32 percentage points from the total duty, reducing it to 18%.

India to purchase goods worth ₹46 lakh crore from the US under the agreement

According to the agreement announced by Trump, India will purchase goods worth more than ₹46 lakh crore ($500 billion) from the United States under the “Buy American” policy. These purchases are to be made over the next five years.

India will buy oil from the US and Venezuela: Trump

“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%.

They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. (sic)”

Eager to take our partnership to new heights: Prime Minister Modi

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.

When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.

President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace.  I look forward to working closely with him to take our partnership to unprecedented heights. (sic)”

India learns about Government actions from Trump; Congress criticises

Following the announcement of the India–US trade deal, the Congress party criticised Prime Minister Narendra Modi. Congress General Secretary Jairam Ramesh posted on X that Prime Minister Modi spoke with US President Trump today, but the information was not shared by India—it was shared by the US Ambassador to India. “This seems to be becoming a regular pattern. India learns about its own government’s actions from President Trump or his appointed representatives. Prime Minister Modi appears visibly under pressure before President Trump. The usual handshakes and hugs are a thing of the past; now Modi even seems uncomfortable being seen with Trump. It appears that he has accepted defeat. This certainly cannot be the ‘Father of All Deals,’” Ramesh said.

No official communication received from India: Russia

Moscow (Russia) – After President Trump stated that India would stop buying oil from Russia as part of the trade deal, Kremlin spokesperson Dmitry Peskov issued a statement. He said that Russia has not received any official communication from India on this matter. “So far, India has not conveyed any information about stopping the purchase of Russian oil. Russia wishes to continue its strategic partnership with India and attaches great importance to bilateral cooperation. India–Russia relations are not limited to oil and gas alone. Our ties in defence, trade, and strategic cooperation go back decades. Despite global pressure, we wish to preserve this partnership,” Peskov said.

Latest Articles