The President of the United States, Donald Trump, has announced a major trade agreement with India on Monday. The deal will cut US tariffs on Indian goods to 18%, down from the previous 50%, in exchange for India halting purchases of Russian oil and increasing imports from the US, including energy, technology, coal, and agricultural products.
Why is this deal happening? The US had previously imposed steep tariffs on Indian imports as a response to New Delhi buying Russian oil, which was seen as undermining Western sanctions. At the same time, India relies heavily on imported energy to meet domestic demand. This agreement is meant to reduce tensions and strengthen economic ties between the two largest democracies.
The trade deal is expected to have broad economic effects. Indian companies listed in the US rallied immediately on the news, including Infosys, Wipro, and HDFC Bank. Analysts say the lower tariffs will help Indian exporters, ease pressure on the rupee, and expand opportunities for US businesses, especially in energy and technology sectors...
This is how Donald Trump announced it on Truth Social:
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