US Cuts Tariffs on Indian Goods to 18%; PM Modi Welcomes Trade Deal with Trump

New Delhi: The United States has announced a fresh trade understanding with India under which tariffs on Indian goods will be reduced to 18 per cent, marking a significant easing of trade restrictions between the two countries.

US President Donald Trump said the decision followed a telephonic conversation with Prime Minister Narendra Modi.

Taking to social media, Trump stated that the tariff cut reflects the strong relationship between the two leaders and confirmed that India would expand trade ties with the US, including higher purchases of American energy and other products.

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 per cent to 18 per cent," Trump said on a social media platform.

Welcoming the announcement, Prime Minister Modi described the development as a positive step for Indian exports and bilateral cooperation.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%,” the Prime Minister said in a post on X.

Thanking the US President for the move, PM Modi added, “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”

Trump also indicated that India has agreed to lower trade barriers for American goods and increase imports from the United States, particularly in the energy sector.

According to the US President, the agreement is expected to strengthen economic ties and create new opportunities for businesses on both sides.

The tariff reduction comes after a period of strained trade relations, during which higher duties had impacted Indian exports.

The latest announcement is being seen as a boost for bilateral trade and a step towards deeper economic engagement between New Delhi and Washington.

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