Prime Minister Narendra Modi and President Donald Trump have announced a new trade deal, reducing U.S. tariffs on Indian products from 25% to 18%.
Prime Minister Narendra Modi took to social media platform X on Monday to express his enthusiasm following a conversation with President Donald Trump. In his post, he conveyed gratitude for the reduced tariff on made-in-India products, which will now be set at 18%. “Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi stated.
Highlighting the significance of collaboration between two of the world’s largest democracies, Modi emphasized that such partnerships create opportunities for mutual benefit. “When two large economies work together, it benefits our people and unlocks immense opportunities for cooperation,” he remarked.
Modi praised Trump’s leadership, asserting its importance for global peace, stability, and prosperity. “India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” he added.
In a parallel announcement, President Trump confirmed the trade deal during his own social media update on Truth Social. He noted that he and Modi had agreed to lower the Reciprocal Tariff from 25% to 18%. Trump characterized Modi as one of his “greatest friends” and acknowledged him as a powerful and respected leader. He expressed confidence in their ability to achieve results together.
During their conversation, Trump also mentioned discussions surrounding global issues, including the ongoing conflict between Russia and Ukraine. “It was an honor to speak with Prime Minister Modi of India this morning. We spoke about many things, including trade and ending the war with Russia and Ukraine,” Trump stated.
Furthermore, Trump highlighted India’s commitment to cease purchasing Russian oil, indicating a shift towards increased energy imports from the United States. “He agreed to stop buying Russian oil and to buy much more from the United States and, potentially, Venezuela,” Trump noted.
Trump also claimed that India would work towards reducing tariffs and non-tariff barriers against U.S. goods, a move that could further enhance trade relations between the two nations.
U.S. Ambassador to India, Sergio Gor, confirmed that President Trump had indeed spoken with Prime Minister Modi earlier on the same day, reinforcing the importance of their dialogue.
This recent agreement follows a previous conversation between Modi and Trump in December of last year, where both leaders expressed their commitment to addressing shared challenges and advancing common interests.
The announcement of the trade deal marks a significant step in U.S.-India relations, with both leaders optimistic about the potential for future collaboration.
According to The Free Press Journal, the new tariff structure is expected to benefit various sectors in India, enhancing the competitiveness of Indian products in the U.S. market.