JAKARTA - US President Donald Trump will reduce the reciprocal tariff from 25 percent to 18 percent on goods originating in India, after Indian Prime Minister Narendra Modi agreed to stop buying oil from Russia.
Trump, through social media, stated in his conversation with Modi, the Indian PM said he would import more US products, while lowering tariffs and easing non-tariff barriers that affect imports from the US.
Reported by ANTARA, Tuesday, February 3, in a post on the X platform, Modi then confirmed the new tariff of 18 percent. He expressed his gratitude to Trump on behalf of 1.4 billion Indians for the announcement which he called good news.
Although many details of what Trump called a trade deal are not yet known, Modi wrote that when the two largest economies and the two largest democracies in the world work together, it will benefit the people and open up great opportunities for mutually beneficial cooperation.
According to Trump, during the talks they discussed trade, efforts to end Russia's war in Ukraine, as well as a number of other issues.
Trump said India's commitment to stop buying Russian oil, and switch to buying more from the US as well as possibly from Venezuela, would help end the protracted war.
In addition, he said India would buy energy and various US products worth more than 500 billion US dollars (about Rp8.3 trillion), including technology and agricultural products.
Trump has repeatedly criticized China and India for continuing to buy Russian oil. In his speech at the United Nations General Assembly (UNGA) in September, he accused the two countries of being the main funders of Russia's war in Ukraine, which has been ongoing since 2022.
In addition to the 25 percent country-specific tariff, Trump also ordered the imposition of an additional 25 percent tariff on goods from India in August last year as a sanction for the country's continued import of Russian oil.
This is not the first time Trump has announced a similar commitment from Modi. In mid-October, Trump said Modi had convinced him India would no longer buy Russian oil.
On Monday, Trump wrote that the relationship between the US and India would get stronger in the future. He called himself and Modi leaders who were able to solve things in a tangible way.
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