Trump: "Trade deal with India... Tariffs to be cut immediately from 25% to 18%"

[The Financial News]

Donald Trump, President of the United States, announced on the 2nd (local time) that he had reached a trade agreement with India and would immediately lower tariff rates.
In a post on his social media platform Truth Social, Trump said that Narendra Damodardas Modi, prime minister of India, had agreed this time to purchase U.S. products "at a much higher level."
He added that Modi had also agreed to "stop buying Russian oil and purchase more from the United States," noting that India might also buy oil from Venezuela.
Trump further stated that he had discussed ending the Russo-Ukrainian War with India and that, based on the agreement between the two countries, the war would end more quickly.
He said that, at Modi’s request, the trade agreement between the United States and India would take effect immediately, and that the United States would lower the reciprocal tariff rate on Indian products from 25% to 18%. He added that India, in turn, would reduce both tariff and non-tariff barriers to "zero."
Trump said that Modi had "promised to buy American" at a much higher level, in addition to purchasing 500 billion dollars’ worth of U.S. energy, technology, agricultural products, coal, and many other goods. In other words, India pledged to buy 500 billion dollars’ worth and agreed to purchase even more than that.
Previously, in early August last year, Trump imposed a 25% reciprocal tariff rate on India, and later that same month he added another 25% tariff on the grounds that India was importing Russian oil.
Modi wrote on the social media platform X, "I am pleased that Indian products will now be subject to the reduced tariff rate of 18%," adding, "On behalf of 1.4 billion Indians, I extend my deep gratitude to President Trump for this remarkable announcement."
India reached a trade agreement with the United States just one week after concluding a Free Trade Agreement (FTA) with the European Union (EU).
Some experts have assessed that once India struck a trade deal with Europe, Trump, feeling the pressure, rushed to wrap up negotiations with New Delhi.

dympna@fnnews.com Song Kyung-jaedympna@fnnews.com Song Kyung-jae Reporter