New Delhi. After the recent telephone conversation between Prime Minister Narendra Modi and US President Donald Trump, the US administration has clarified that only 18 percent tariff will now be imposed on Indian products. This step is a significant progress towards reducing the tariffs that were increased in the past months. Earlier, the US tariff on Indian products had increased to 50 percent, due to which Indian exporters faced a huge challenge.

Jaishankar explained the importance of the agreement.

Foreign Minister S. Jaishankar, at the conclusion of his visit to Washington, said that this agreement will reduce bilateral trade tensions and usher in a new era in India-US economic relations. He said that momentum is evident at the political level and technical details are being finalized under the leadership of Commerce Minister Piyush Goyal. Jaishankar wrote on social media that the visit has been positive and productive and the trade agreement is in the final stages.

Indian industries and employment will benefit.

According to Foreign Ministry spokesperson Randhir Jaiswal, this tariff reduction is a lifeline for Indian exporters. It will increase competitiveness in industries such as gems and jewellery, textiles, engineering, and pharmaceuticals. This will create new employment opportunities in India and open the door to economic prosperity.

Areas of Trade and Strategic Cooperation

Beyond trade, cooperation between the two countries is rapidly expanding in the field of critical minerals. Securing supply chains for lithium, cobalt, and other rare minerals is a strategic priority for both countries. Future high-level meetings are expected in the areas of defense, energy, and nuclear cooperation.

The US pressured India to open its markets, but Indian negotiators ensured adequate safeguards were in place in sensitive

sectors such as agriculture and dairy. Indian tariffs on US goods were not reduced to zero to protect the interests of local farmers and producers.