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 came after Indian Prime Minister Narendra Modi committed to ending India’s purchases of 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 agreement reflects cooperation on trade and geopolitical issues related to the war in Ukraine.
**Why this matters**
The deal signals a shift in India’s energy sourcing amid global pressure to reduce reliance on Russian oil. It also highlights the use of trade incentives by the US to influence international policies related to the Ukraine conflict. Reducing tariffs could boost Indian exports to the US, potentially benefiting both economies.
Source: NewsData