US President Trump confirmed that he had a phone call with Indian Prime Minister Modi on the morning of the 2nd, during which Modi agreed that India would stop purchasing Russian oil, while the US would lower tariff rates on Indian goods exported to the US.
Trump stated on social media that Modi also agreed to significantly increase purchases of American oil and may consider buying Venezuelan oil.
He said that he and Modi reached a bilateral trade agreement. The US will immediately lower the so-called "reciprocal tariff" rate imposed on Indian goods from 25% to 18%, and India will simultaneously reduce tariffs and non-tariff barriers on US goods.
He stated that aside from purchasing over $500 billion (about 19.695 trillion ringgit) worth of American energy, technology, agriculture, coal, and other products, Modi also promised to significantly increase the level of "buying American goods."
A White House spokesperson later told CNN that in addition to reducing the so-called "reciprocal tariffs," Trump will also completely remove the additional 25% tariff imposed to force India to stop purchasing Russian oil.
On the same day, Modi confirmed on social media that the US had agreed to lower the tariff rate on Indian goods exported to the US to 18%.
On July 31 last year, the US government announced a 25% "reciprocal tariff" on Indian goods exported to the US, which took effect on August 7 of that year. On August 6, Trump signed an executive order to impose an additional 25% tariff on Indian goods on the grounds that India "directly or indirectly imports Russian oil."