Donald Trump, PM Modi
US President Donald Trump has reduced the tariff on India. It has been directly reduced from 25 percent to 18 percent. This decision was taken after a phone call between the two leaders. Now there will be only 18 percent tariff between India and America. However, the tariff rates will decrease further with time. A big agreement was reached between Trump and PM Modi regarding this.
Trump said that the goal is to reduce it from 18 percent to zero. There were discussions on many issues including trade between PM Modi and Trump. Trump posted on his social media account Truth and said, PM Modi is one of my best friends and a powerful and respected leader of his country. We discussed a wide range of issues, including trade and ending the war between Russia and Ukraine.
India will now buy oil from Venezuela, not Russia: Trump
During this, the issue of American purchases worth more than 500 billion dollars was discussed. Trump further said that India will now stop buying oil from Russia. India will buy fuel from America and Venezuela. Trump also said that India will buy many things from America.
Trump said that he will reduce the tariffs further in the coming time. The reduced tariff rates will be applicable with immediate effect. Trump said that our relations with India will become even stronger in the future. Prime Minister Modi and I are two people who get things done.
America had imposed 50% tariff on India
Let us tell you that last year America had imposed a total tariff of 50 percent on India. There was a 25% reciprocal tariff and the remaining 25% was imposed as ‘penalty’. This tariff was imposed due to buying oil from Russia. The biggest impact of these heavy tariffs was on India’s textiles, gems and jewellery, auto parts and engineering goods.
Under the new agreement between India and America, America has reduced the tariff on India. According to Trump’s claims, India has agreed to stop purchasing Russian oil and increase imports of American products. Along with this, India has also indicated to withdraw its recent tariffs imposed on American pulses and agricultural products.