U.S. tariff on India reduced to 18%, say Modi and Trump, Pg1

Key Highlights:

• Tariff on "Made in India" products in the U.S. reduced to 18% after a conversation between PM Modi and President Trump.
• Trump announced India and the U.S. had “agreed to a trade deal” on Truth Social.
• Trump claimed India agreed to “stop buying Russian oil” and reduce trade barriers to zero.
• Modi expressed delight that "Made in India" products will now have a reduced tariff of 18%.
• Jaishankar is on a visit to the U.S. from February 2-4 to participate in the Critical Minerals Ministerial meet.

Detailed Insights:

• Trump had imposed 50% penalty tariffs on India in August 2025, which this move is expected to significantly reduce.
• Trump claimed India will increase purchases of U.S. products to $500 billion, and potentially buy from Venezuela.
• The announcements have drawn mixed reactions, with some critics suggesting a capitulation by the Indian government.
• S. Jaishankar's visit to the U.S. includes participation in a Critical Minerals Ministerial meet, highlighting the importance of strategic resources.
• The telephonic conversation indicates a potential positive shift in the bilateral relationship between India and the U.S.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when they are moved across a customs border.
• Non-Tariff Barriers: Trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs.
• Bilateral Relationship: A diplomatic, commercial, or cultural relationship between two countries.