The United States has reduced the tariff on goods imported from India to 18 percent.TAG_OPEN_p_16 US President Donald Trump and Indian Prime Minister Narendra Modi have given this information on social media. President Trump also said that the US-India trade deal has been agreed upon, but the Prime Minister’s post does not mention the details of the deal.

“The United States and India have reached a trade deal under which reciprocal tariffs have been reduced from 25 percent to 18 percent,” Trump wrote on social media.TAG_OPEN_p_15 On the other hand, Prime Minister Modi has expressed happiness over the reduction in duty on ‘Made in India’ products.

US Ambassador to India Sergio Gore said that there is great potential in the relationship between the US and India and he is encouraged by the trade deal.TAG_OPEN_p_14 According to him, President Trump considers Prime Minister Modi to be his good friend.

The announcement assumes significance as relations between the US and India have been on a rollercoaster ride over the past year.TAG_OPEN_p_13 Earlier, the US had imposed a 25 percent tariff on India and an additional 25 percent for buying oil from Russia, taking the total duty to 50 percent.

Trump said he discussed trade, the Russia-Ukraine war and energy purchases.TAG_OPEN_p_12 According to him, India has agreed to buy less oil from Russia and buy more oil from the US and possibly Venezuela. Trump said that this will help end the war in Ukraine.

Trump has said that India will move towards reducing its tariff and non-tariff barriers to the US and has committed to buy more than $500 billion in energy, technology, agriculture and coal under the ‘Buy American’ policy.TAG_OPEN_p_11

Prime TAG_OPEN_p_10 Minister Modi also expressed happiness for talking to President Trump and thanked the 1.4 billion people of India for the reduction in tariffs. “Working together between the two largest economies and the world’s largest democracies will benefit the people of both countries,” he said. “President Trump’s leadership is critical to world peace and stability,” he said.

The Indian opposition Congress party has reacted to this announcement.TAG_OPEN_p_9 Congress spokesperson Jairam Ramesh said that President Trump has been making big announcements about India from Washington and this has put pressure on Prime Minister Modi. According to him, this time India seems to have bowed down and the full details of the agreement are yet to come.