What is the story about?
In a major announcement, US President Donald Trump, on Monday, said that the US and India "have agreed to a trade deal" with Washington reducing the reciprocal
tariff from 25 per cent to 18 per cent "out of friendship and respect" for Prime Minister Narendra Modi. In his Truth Social post, the president listed several claims over the trade deal, some of which were confirmed, while others weren't by PM Modi in his social media post.
'India to stop purchasing Russian oil'
Trump declared Russian oil as one of the primary reasons, citing that India had agreed to stop buying oil from Russia and would potentially turn to Venezuela. "This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!" he wrote.
'Friendship and respect for PM Modi'
Trump also cited his “respect for PM Modi” stating, "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% to 18%."
Zero tariffs for US?
He also stated that PM Modi told him India “will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO”, a claim which was not confirmed by the Prime Minister in his post.
A $500 billion promise?
He further claimed that India had committed to "BUY AMERICAN," at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products and said they were two leaders that "GET THINGS DONE, something that cannot be said for most”.
While PM Modi mentioned the reduced tariffs of 18% on his social media announcement, he did not confirm whether India will buy $500 billion worth of US goods, and that Delhi will cut tariffs for US to zero.
A White House official confirmed to ANI that Washington will also drop the additional 25 per cent tariff on Indian imports imposed due to New Delhi's purchase of Russian oil, noting that India has to "cease, not just reduce, Russian oil purchases."
(With agency inputs)
