Trump’s Surprise Trade Deal With India Resets Fractured Ties

President Donald Trump and Prime Minister Narendra Modi took a major step to reset fractured ties with a surprise deal on Monday to slash tariffs, bringing much-needed relief to India’s economy.

The US will cut its levy on Indian goods to 18% from 25%, lower than most Asian peers, while an additional 25% punitive duty tied to purchases of Russian oil was scrapped. Trump said Modi had agreed to buy $500 billion of US goods, cut its tariffs to zero, and halt crude purchases from Russia, a key demand of the US president.