U.S.-India Trade Relations and Tariff Discussions
A recent development in the U.S.-India bilateral relationship indicates a positive shift, as both countries have agreed to reduce tariffs on each other's products.
Key Announcements
- Prime Minister Narendra Modi announced that "Made in India" products will now face a reduced tariff of 18% in the U.S.
- This decision follows a telephonic discussion with U.S. President Donald Trump.
- President Trump announced on Truth Social that the U.S. will reduce its reciprocal tariff from 25% to 18%.
Economic Impact
- This move is aimed at alleviating the impact of the previous 50% penalty tariffs imposed by the U.S. in August 2025.
- It is expected to open up new markets and strengthen existing trade routes for India.
Further Commitments
- President Trump claimed that India has agreed to halt purchasing Russian oil.
- India is committed to increasing the purchase of U.S. products to $500 billion.
Political Reactions
- Commerce and Industry Minister Piyush Goyal welcomed these developments.
- The Congress party, however, expressed skepticism, with general secretary Jairam Ramesh claiming that Mr. Modi has capitulated.
External Affairs Minister's U.S. Visit
- External Affairs Minister S. Jaishankar is visiting the U.S. from February 2-4 for the Critical Minerals Ministerial meeting.
- The meeting, convened by U.S. Secretary of State Marco Rubio, will focus on supply chain resilience and clean energy transitions.
- Countries like Kenya, South Korea, and the Democratic Republic of Congo will also participate to reduce dependence on China for critical minerals.
