India, US Seal Historic Trade Deal After 12 Months of Tariff Tensions and Diplomatic Feats

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In a major breakthrough, India and the United States have finalized a trade deal after a year of on-again, off-again negotiations marked by tariff disputes, oil politics, and tense diplomatic exchanges. The agreement, announced on Monday, follows a phone call between Prime Minister Narendra Modi and US President Donald Trump, who described it as a 'wonderful announcement' and a significant step in strengthening bilateral ties. The deal reduces US tariffs on Indian goods from 50% to 18%, a significant concession that reflects a dramatic shift in the trade relationship between the two nations. The agreement also commits India to purchasing over $500 billion worth of American products, including energy, technology, and agriculture, and to phasing out Russian oil imports in favor of US and potentially Venezuelan supplies. The trade deal marks a major achievement for both countries, coming after months of uncertainty and diplomatic brinksmanship. Despite disagreements over market access, tariff structures, and digital trade rules, the two nations remained committed to finding a mutually acceptable solution. The negotiations were marked by several key milestones, including a US delegation visit to India in December and multiple phone calls between the two leaders. However, the talks were also complicated by public remarks from US officials that sparked controversy and domestic political reaction in India. In the end, the breakthrough came after a phone call between Modi and Trump, which flagged the deal's key components, including the tariff reduction and India's commitment to purchasing American products. The agreement is seen as a significant step forward in the bilateral relationship, which has been strained by several factors, including US criticism of India's defense and energy ties with Russia. The deal is set to have significant implications for both countries, including increased trade and economic cooperation. As India continues to grow and expand its global presence, the trade agreement with the US is seen as a major victory, reflecting the country's ability to navigate complex diplomatic terrain and secure a favorable outcome for its citizens.