New Delhi: The tension between the US and India over tariffs appears to be easing. US President Donald Trump has made a major announcement, giving a boost to Indian businesses. President Trump has reduced the tariffs imposed on India.
Now, a total tariff of 18 per cent will be levied on Indian imports into the US, instead of 25 per cent. This is being seen as a major relief for Indian exporters. This is being viewed as a significant initiative by Trump to resolve the differences between the two countries. Clearly, relations between the two countries appear to be improving.
Improving Relations Between the Two Countries
It may be surprising to learn that relations between the two countries are now improving. Announcements by both US President Donald Trump and Prime Minister Narendra Modi have brought significant relief to Indian exporters, indicating that the US will reduce “reciprocal” tariffs on India from 25% to 18%, suggesting that relations between the two countries are improving after a year of considerable tension.
Statement from the US Embassy
A spokesperson for the US Embassy shared this important information: the 25% penalty tariff imposed on India last August, which had increased the total tariff to 50%, the highest on any country in the wor,ld along with Brazil, has now been removed.
Furthermore, “Out of friendship and respect for Prime Minister Modi and at his request, effective immediately, we have agreed to a trade agreement between the United States and India under which the United States will impose lower reciprocal tariffs, reducing them from 25% to 18%.
Modi also posted the information.ion
PM Narendra Modi said in a post that he is happy that the tariff on Made in India products will now be reduced toper centcent. On behalf of the 1.4 billion people of India, a big thank you to President Trump for this wonderful announcement. He further added, “When two large economies and the world’s largest democracies work together, it benefits our people and opens up many opportunities for mutually beneficial cooperation.
This move to reduce US tariffs, which came during External Affairs Minister S. Jaishankar’s participation in the Critical Minerals Ministerial Meeting in Washington, and a few weeafter USaUS Ambassador Sergio Gor visitedit to Delhi, followed a telephone call between the two leaders and has been welcomed by both governments and business chambers.
“Our excellent relationship with India will only grow stronger. Prime Minister Modi and I are two people who get things done, which can’t be said about most people.”
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