US President Donald Trump has said that the US and India have agreed on a trade deal under which Washington has reduced reciprocal tariffs from 25 per cent to 18 per cent, showing friendship and respect towards Prime Minister Modi.

"The world bows, it just needs someone to bend it," Sanjeev Sanyal, a member of Prime Minister Narendra Modi's Economic Advisory Council, said in a post on X on Monday after the announcement of the India-US trade deal under which Washington has reduced tariffs on India to 18 percent. Sanyal's comment, which translates to "the world bows, it just needs someone to bend it," comes shortly after US President Donald Trump said the US and India have agreed on a trade deal under which Washington has reduced reciprocal tariffs from 25 percent to 18 percent, showing friendship and respect for Prime Minister Modi.

With the US reducing tariffs on Indian products to 18 percent, India appears to be gaining a significant advantage in global export competitiveness. The new tariff structure places India in the category of countries with lower tariffs compared to many major exporting economies. Under the current tariff situation, the US tariff on India will remain at 18 percent, compared to 19 percent for Indonesia, 20 percent for Vietnam and Bangladesh, and 34 percent for China. In this comparison, India now appears to be in a better position than its Asian export competitors.

Agreement to stop buying crude oil from Russia

The White House said on Monday that the 25 percent additional tariff on Russian oil will be completely removed as part of India's agreement to stop buying crude oil from Russia. The decision was taken after a phone conversation between President Donald Trump and Prime Minister Narendra Modi. An official said that the 25 percent Russian oil-related tariff is being removed as part of India's agreement to end its purchase of Russian oil.

Trump made the announcement on 'Truth Social'

President Trump stated on the social media platform Truth Social that the agreement would reduce US reciprocal tariffs from 25 percent to 18 percent. He described it as a major shift in bilateral trade relations linked to energy cooperation and geopolitical goals. According to Trump, the two leaders discussed a number of issues, including trade, the Russia-Ukraine war, and energy supplies. He claimed that Prime Minister Modi agreed to stop purchasing Russian oil and increase oil imports from the US, and possibly Venezuela.

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