Big question: After the ‘Buy American’ agreement, have American companies been allowed to set foot in sectors like agriculture, dairy, meat and poultry?
SNPNEWS.IN News (Gurmel Kamboj): US President Donald Trump spoke to Prime Minister Narendra Modi on the phone yesterday, Monday morning. After this, at around 10:30 pm, Trump announced this on the social media platform ‘Truth Social’. Trump claimed that Modi has agreed to stop buying oil from Russia and buy more oil from the US. According to Trump, India will buy oil from Venezuela if needed. India will buy goods worth over Rs 46 lakh crore (USD 500 billion) from the US under the ‘Buy American’ policy.
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The US has reduced tariffs on goods imported from India from 50% to 18%. In fact, there was a punitive 25% reciprocal tariff (called TESA) and 25% on oil purchases from Russia. Now the punitive 25% tariff has been completely eliminated and the reciprocal tariff has been reduced from 25% to 18%.
US President Donald Trump wrote in a post on Truth:
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 talked about many things, including trade and ending the war with Russia and Ukraine. He agreed to stop buying Russian oil and buy more from the United States and potentially Venezuela.
This will help end the war in Ukraine, which is currently raging, in which thousands of people are dying every week! Out of friendship and respect for Prime Minister Modi and, at his request, effective immediately, we have agreed to a trade agreement between the United States and India, under which the United States will impose a reduced reciprocal tariff, reducing it from 25% to 18%. They will also move to eliminate their tariff and non-tariff barriers against the United States.
The Prime Minister (Modi) also committed to “Buy American” at a very high level, in addition to more than $500 billion in American energy, technology, agriculture, coal and many other products. Our wonderful relationship with India will only grow stronger going forward. Prime Minister Modi and I are two people who get things done, which is not the case for most people. Thank you for your attention to this matter!
Prime Minister Narendra Modi wrote on X -:
It was a great pleasure to speak to my dear friend President Trump today. I am happy that 18% duty on Made in India products will now be reduced. A big thank you to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.
When two major economies and the world’s largest democracies work together, it benefits our people and opens up endless opportunities for mutually beneficial cooperation.
President Trump’s leadership is crucial for world peace, stability and prosperity. India fully supports his efforts for peace.
I look forward to working with him to take our partnership to unprecedented heights.