The President of the United State has posted the following on his truth social handle:
“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! 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. 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. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!” – PRESIDENT DONALD J. TRUMP (https://truthsocial.com/@realDonaldTrump/posts/116002095109616255)
The key takeaways are – India will stop buying Russian oil and US will lower tariff to 18% and, in future, India will altogether remove “Tariffs and Non Tariff Barriers” against the United States.
Given the recent background of President Trump’s “Truths” about the role played by him in India’s Operation Sindoor and how the stated position of the two sides differed, one wonders how much of the President Trump’s “Truth” is truth.
The Prime Minister Modi, in his response on X, has confirmed the conversation with his US counterpart and has welcomed US decision to reduce tariff against Indian products to 18% but he is silent on contentious Russian oil and opening of India’s agricultural and dairy sectors to the US.
So, how much of “Truth Social post” of Donald Trump is truth?
EAM Jaishankar has welcomed announcements on bilateral trade following the conversation between PM Modi and POTUS but has given no details of arrangements agreed.
Union Minister of Commerce & Industry Piyush Goyal is little more forthcoming. He has confirmed the trade agreement which, he says, unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers of India and will help India get technology from the US. But, nothing beyond this.
Obviously, both sides are wary of saying anything that will not go down well with their voters given India is perennially in election mode and US too has Congressional election scheduled in November this year. Both sides have to have list of their achievements to charm their voters and not to give any ammunition to the opposition.
But one thing is certain – Trump has taught the world not to keep all eggs in one basket. Nations will work towards diversification of their International trade. UK, EU and India have already taken concrete steps towards this.
