US, India agree trade deal: US to cut tariffs

Kathmandu. US President Donald Trump has announced that he has reached a trade deal with India. US President Donald Trump spoke to Prime Minister Narendra Modi over the phone.

According to the agreement, the US will reduce the tariffs on goods imported from India from 25 percent to 18 percent.TAG_OPEN_p_5 At the same time, India has pledged to reduce the trade barrier to zero and stop buying Russian oil. The US has also decided to scrap a 25 percent tariff on India’s oil purchases from Russia.

“Trade, energy, technology, agriculture and coal production were discussed during the meeting,” Trump said in a post.TAG_OPEN_p_4 As part of the agreement, India has committed to buy US goods worth more than $500 billion.

The landmark US-India agreement comes after more than two decades of negotiations with the European Union.TAG_OPEN_p_3 Prior to the deal, the US imposed a 50 percent tariff on goods imported from India. After the reduction in tariffs, Indian exports are expected to recover in the US market.