India’s 18% US tariff among lowest offered to any country: PMO sources

Guwahati, Feb 4: The tariff deal between India and the United States of America (USA) has been finalised following discussions between Prime Minister Narendra Modi and US President Donald Trump on Monday evening, and India is getting a tariff which is lower than most other countries.

Sources in the Prime Minister’s Office (PMO) told The Assam Tribune that both leaders had a detailed discussion over the phone, and Indian products will now have a reduced tariff of 18 per cent. Immediately after the deal, Modi thanked Trump on behalf of the 1.4 billion people of India.

However, sources revealed that the signing of the formal deal would take some time as lots of issues would have to be covered before signatures are put on paper. Sources said that concerned ministers and officers would now sit together to finalise the trade deal, which would take some time. However, both countries are keen on closing the deal as soon as possible after the heads of both sides agreed on a figure.

Sources revealed that talks with the USA were going on for a long time, but the final deal could not be closed.

But both Modi and Trump finalised the deal after having a discussion. The deal, once signed, will help Indian exporters a great deal.

Regarding the energy sector, sources said that India would buy from any country or wherever it is cheaper. However, India agreed not to buy oil from the sanctioned countries or companies.

Venezuela was a sanctioned nation for a long time, but it has been withdrawn.

Prime Minister Modi recently had talks with the acting Prime Minister of that country, and it is likely that India will start buying oil from Venezuela, depending on the prices.

Sources also said that agriculture would remain a closed sector, for the benefit of Indian farmers, and it will not be opened for other countries.

PMO sources also revealed that the 18 per cent tariff offered to India is one of the lowest offered by the USA to any country.

Among the countries exporting the same kind of products to the USA are India’s competitors, Indonesia, which has a tariff of 19 per cent, Vietnam (20 per cent), Bangladesh (20 per cent) and China (34 per cent).

The tariff agreement with the USA came just a few days after India signed a mega tariff deal with the European Union, which is termed as the “mother of all deals”.

The deal with the EU was signed on January 27 in the presence of Modi and EU President Ursula von der Leyen in New Delhi.