By Admin 
The situation has now become clear from the White House fact sheet on the confusion created after President Donald Trump’s ‘zero tariff’ statement regarding the new trade agreement between India and America. The Trump administration has described this deal as ‘historic’ and said that this will open the Indian market of more than 1.4 billion people to American products. The White House has given clarity on many important issues by explaining the terms of the agreement in detail.
Reciprocal tariff on India reduced, additional 25% tariff will be removed
According to the White House statement, America has agreed to reduce the reciprocal tariff imposed on India from 25% to 18%. Along with this, it has also been decided to remove the additional 25% tariff imposed on Indian imports. This step has been taken in honor of India’s commitment to stop purchasing oil from Russia.
Clarification on ‘zero tariff’ claim
The White House fact sheet has also thrown light on President Trump’s claim in which he had said that India has agreed to ‘zero tariff and non-tariff barriers’ against America. The statement made it clear that this does not mean eliminating all tariffs immediately, but there is an in-principle agreement to reduce or phase out tariffs on selected American products. The fact sheet has given a great deal of clarity on the concern that was created among Indian businessmen due to Trump’s aggressive language.
Agreement to reduce tariffs on American industrial and agricultural products
According to the White House, India has agreed to eliminate or reduce tariffs on all American industrial products and many American food and agricultural products. These include Dried Distillers Grains (DDGs), red jowar, dry fruits, fresh and processed fruits, some pulses, soybean oil, wine, spirits and other products.
Promise to buy more from America
India has also committed to buy more products from America. According to the fact sheet, India will buy American energy, information and communication technology, agricultural products, coal and other goods worth more than $500 billion.