What is the story about?
The White House announced that India has committed to ceasing purchases of Russian oil and will invest $500 billion in key American sectors. This agreement
was highlighted by White House Press Secretary Karoline Leavitt during a press briefing. Leavitt stated that Prime Minister Narendra Modi and President Trump discussed the trade deal directly, emphasizing the positive relationship between the two leaders. The deal aims to enhance U.S.-India economic ties while benefiting American workers and consumers.
Details of the Agreement
During the briefing, Leavitt noted, "The President struck another great trade deal with India. They share a very good relationship. India is committed to not only no longer purchasing Russian oil, but buying oil from the United States, also perhaps from Venezuela too." This commitment is expected to have a direct benefit on the U.S. economy and its citizens.Additionally, she remarked that Prime Minister Modi has agreed to invest significantly in various sectors including transportation, energy, and agricultural products. Leavitt emphasized the significance of this deal, stating, "This is another great trade deal thanks to President Trump." Earlier discussions between the two leaders were described as productive and influential in shaping this agreement.
Tariff Adjustments and Economic Impact
Leavitt indicated that the U.S. tariff on India will be reduced to 18 percent, while American exports to India will face a tariff of 0 percent. This adjustment is seen as beneficial for American businesses and consumers, marking a shift from the previous 50 percent tariffs imposed on India, which included a 25 percent tariff on Russian oil purchases.In a post on Truth Social, President Trump announced that the new trade deal includes a reduction in tariffs, which aims to foster better economic relations between the two nations. The deal stipulates that India will also work towards eliminating its tariffs and non-tariff barriers against U.S. goods.
Statements from Leaders
President Trump expressed optimism about the future of U.S.-India relations, stating, "Our amazing relationship with India will be even stronger going forward." He acknowledged Modi as a leader who is committed to significant economic collaboration.In response, Prime Minister Modi expressed gratitude towards Trump, stating, "Delighted that Made in India products will now have a reduced tariff of 18 percent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement." Modi further emphasized the importance of cooperation between the two democracies, highlighting the benefits it brings to their respective populations.
