New Delhi: The United States reduced tariffs on Made in India products to 18%, down from 25%, following talks between Prime Minister Narendra Modi and US President Donald Trump, marking a significant development in bilateral trade ties.
PM Modi welcomed the decision, calling it a boost for economic cooperation between the two countries. In a post on X, the prime minister thanked Trump for the announcement, saying the move would benefit India’s 1.4 billion people and unlock new opportunities as the world’s two largest democracies work more closely together.
Trump, in a detailed post on his Truth Social platform, said the tariff cut was part of a broader trade understanding reached “effective immediately” between Washington and New Delhi. He described PM Modi as a close friend and said the agreement reflected mutual respect and shared economic interests.
According to Trump, the United States agreed to lower reciprocal tariffs to 18%, while India committed to moving forward with reducing its own tariffs and non-tariff barriers on US goods. Trump also said PM Modi had agreed to significantly increase purchases from the United States, including energy, technology, agricultural products and coal, with potential deals valued at over $500 billion.
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The US president further linked the trade agreement to broader geopolitical discussions, claiming that PM Modi had agreed to stop buying Russian oil and instead source more energy from the United States and possibly Venezuela. Trump said the issue was discussed in the context of efforts to end the war between Russia and Ukraine, though no independent confirmation or official Indian statement has been issued on changes to India’s energy policy.
In his statement, PM Modi emphasised the strategic dimension of India-US ties, praising Trump’s leadership and saying India supported efforts aimed at global peace, stability and prosperity. He added that he looked forward to working closely with the US president to take the partnership to “unprecedented heights.”
India and the United States have expanded trade and strategic cooperation steadily in recent years, even as differences over tariffs and market access have periodically surfaced. The reduction of US tariffs to 18% is being viewed as a confidence-building step that could pave the way for deeper trade negotiations and closer economic alignment between the two countries.
