U.S. lowers tariffs on India under trade deal

The United States and India have reached a trade deal, under which the U.S. will lower its so-called reciprocal tariffs on India from 25 percent to 18 percent, U.S. President Donald Trump announced Monday.

"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," Trump said in his social media post.

"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," Trump said.

Modi has agreed to "stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," Trump added.

Besides the 25-percent "reciprocal" tariffs, Trump also imposed an additional 25 percent tariff last year, purportedly as punishment for India's purchase of Russian oil.