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The government on Tuesday said US President Donald Trump announced the India–US trade deal first because Washington had initially imposed reciprocal tariffs,
and therefore the decision to reduce those duties naturally came from the American side. Commerce and Industry Minister Piyush Goyal said at a press conference, "US had imposed reciprocal tariff, so announcement regarding reduction came from President Trump." India and the US agreed on a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent, Trump said on Monday after a phone conversation with Prime Minister Narendra Modi.
The prime minister said he was delighted that "made in India products will now have a reduced tariff of 18 per cent".
"Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," Modi said on 'X' without mentioning the trade deal.
Trump claimed India will move forward to reduce its "tariffs and non tariff barriers" against the US to zero.
"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 per cent to 18 per cent," the US president said on social media.
India will "likewise move forward to reduce their tariffs and non tariff barriers against the United States, to zero".
Trump said Modi also committed to "buy American" at a much higher level, in addition to over USD 500 billion dollars of US energy, technology, agricultural, coal, and many other products.
"Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that get things done something that cannot be said for most," he said.
In his remarks, Modi said, "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," he said, adding, "I look forward to working closely with him to take our partnership to unprecedented heights."
