'It is about tariff reduction': FM Sitharaman on India-US trade deal – The Times of India

NEW DELHI: Union finance minister Nirmala Sitharaman on Tuesday said that the announcement of an agreement between India and the US is on the “reduction in tariffs” and that details of the trade deal between the two countries will have to be announced and worked out.“It’s very good news. So it’s a reduction in tariff. But the details will have to be announced and worked out. But at the moment, it is a reduction in the tariff,” Sitharaman said while talking to news agency PTI.“It’s come down to 18, which is a very good news. So it’s reduction in tariff,” she added.Sitharaman’s reaction came a day after US President Donald Trump announced that India and the US have finalised a trade deal.“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump announced in a social media post on Truth Social.“This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!” he added.PM Modi also confirmed the announcement and said, “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights.”The deal comes days after India and the EU announced what both sides called the ‘mother of all’ trade deals. While European Union is India’s largest trading partner as an economic bloc, US continues to be the single largest trading partner.On Saturday, Trump claimed that India would begin purchasing crude from Venezuela, a move he said would help substitute part of the Russian oil supplies. During the same interaction, Trump also indicated that India would source Venezuelan oil in place of Iranian supplies. However, India had already stopped importing Iranian crude in 2019 following US sanctions linked to Tehran’s nuclear programme