Trump Announces Major US-India Trade Deal, Cuts Tariffs to 18%
Former US President Donald Trump has announced a new trade agreement with India, pledging to slash tariffs on Indian goods from 25% to 18%. The announcement, made during the US election campaign, follows a conversation Trump said he had with Prime Minister Narendra Modi.
Key Takeaways
- Donald Trump announces a new US-India trade deal.
- Tariffs on India to be reduced from 25% to 18%.
- Trump describes PM Modi as a “great friend” and says he was “very happy” with the agreement.
- The deal emerges amid a tight US presidential race and a history of trade disputes.
Trump’s Announcement and Praise for Modi
In an interview with Fox News, Trump detailed the agreement. “I spoke to my great friend, Prime Minister Modi of India, over the weekend. We have a big trade deal done. We are bringing down the tariffs from 25 per cent to 18 per cent. It’s a big deal,” he said.
He further praised the Indian leader, stating, “He (PM Modi) is a great guy. He is doing a great job. He is a great friend of mine and a great friend of our country.” Trump added that Modi was “very happy” with the concluded deal.
Context: Election and Past Trade Tensions
The announcement comes as Trump is locked in a tight race with incumbent President Joe Biden for the November 5 US presidential election. It also marks a shift from earlier tensions.
During his previous term (2017-2021), Trump imposed tariffs on steel and aluminium imports from several nations, including India. India responded with retaliatory tariffs on US products, and the two countries were involved in disputes at the .
Previous Deal and Potential Impact
In 2020, the two nations signed a limited trade deal that restored benefits for Indian exporters under the US Generalized System of Preferences (GSP) programme. The new, broader deal announced by Trump is expected to be a significant boost for the Indian economy and is seen as underscoring the close rapport between the two leaders.
