US President Donald Trump announced on Monday that the United States and India have agreed to reduce tariffs on Indian goods from 25% to 18%. This agreement followed Indian Prime Minister Narendra Modi’s commitment to stop purchasing Russian oil amid the ongoing conflict in Ukraine.
The tariff reduction is part of a broader trade deal aimed at strengthening economic ties between the two countries. The move reflects India’s shift in energy sourcing in response to international pressure related to the war in Ukraine.
**Why this matters**
The agreement signals a significant shift in India’s energy policy by reducing reliance on Russian oil, aligning more closely with Western sanctions efforts. Lower tariffs on Indian products could enhance trade flows between the US and India, potentially benefiting exporters and fostering stronger bilateral economic relations.
Source: NewsData