Washington/New Delhi, Feb 2 (PingTV News): In a massive diplomatic breakthrough, US President Donald Trump and Prime Minister Narendra Modi have finalized a long-awaited bilateral trade deal. The announcement came late Monday following a high-stakes phone call between the two leaders, just hours before External Affairs Minister S. Jaishankar arrived in Washington.
The Big Breakthrough: Tariffs Slashed
The deal marks a significant de-escalation in trade tensions. Under the new agreement:
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Reciprocal Tariffs Reduced: The US will immediately lower reciprocal tariffs on Indian goods from 25% to 18%. This follows a period where India faced cumulative duties as high as 50%.
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Zero-Tariff Goal: India has agreed to work toward reducing tariffs and non-tariff barriers against US products to ZERO.
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“Buy American” Commitment: PM Modi has committed to a massive “Buy American” initiative, including over $500 Billion in US energy, technology, agriculture, and coal.
The Russia-Ukraine Factor
A major pillar of the deal involves a strategic shift in India’s energy imports. President Trump revealed on Truth Social that PM Modi has agreed to stop purchasing Russian oil. Instead, India will significantly increase its energy imports from the United States and potentially Venezuela.
“This will help END THE WAR in Ukraine,” Trump stated, praising PM Modi as a “Powerful and Respected Leader” and one of his “greatest friends.”
Jaishankar’s Mission in Washington
The phone call sets a triumphant stage for EAM S. Jaishankar, who begins his US visit today (Feb 2–4). While the trade deal stole the headlines, Jaishankar’s official agenda remains focused on:
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Critical Minerals Ministerial: Convened by Secretary of State Marco Rubio, focusing on securing supply chains for clean energy and defense.
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Strategic Cooperation: Meetings with top US officials to discuss the QUAD Summit (hosted by India later this year) and regional security in the Indo-Pacific.
What This Means for India
This deal is seen as a major win for the Indian economy, particularly for exporters who were struggling under heavy US penalties. It also signals a “strategic recalibration,” bringing New Delhi and Washington into their closest alignment since the “Operation Sindoor” crisis last year.
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