Following his meeting with Indian Prime Minister Narendra Modi, US President Donald Trump stated on social media that the two countries had reached a trade agreement. Trump emphasized that, out of friendship and respect for Prime Minister Modi, the United States and India agreed to work on a trade deal under which the reciprocal customs tariff would decrease from 25% to 18%.

According to a statement from the White House, the additional 25% punitive customs tariff imposed due to India’s purchases of Russian oil has also been lifted. As a result, the overall tax burden on Indian products has decreased significantly.

Trump also stated that India committed to purchasing more than USD 500 billion worth of goods from the United States, including energy, technology, agriculture and other products.

Prime Minister Modi, in a post on social media, evaluated his meeting with Trump positively. Modi stated that he was pleased with the 18% customs tariff advantage granted to products manufactured in India and thanked the US President.

Experts consider the agreement a positive step following long-standing trade negotiations, while emphasizing that it will become clearer in the coming period whether this is a comprehensive trade agreement or merely a regulation focused on tariffs.