Trump Announces India-US Trade Deal After Speaking With PM Modi, Lowers Tariffs From 25% To 18%

(MENAFN- Live Mint) US President Donald Trump said the United States and India have reached a trade agreement following a conversation with Prime Minister Narendra Modi, announcing a reduction in reciprocal tariffs and expanded economic cooperation between the two countries.

“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country,” Trump wrote on Truth Social.“We spoke about many things, including Trade, and ending the War with Russia and Ukraine.”

Trade deal with lower tariffs

Trump said that, in response to India's request and“out of friendship and respect for Prime Minister Modi,” the "US had agreed to a bilateral trade deal" that includes "reduced reciprocal tariff.

“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% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” Trump wrote.

Trump announces trade deal with India LIVE updates here

He added that India also committed to“BUY AMERICAN,” with plans for more than $500 billion in purchases of US energy, technology, agricultural products, coal and other goods as part of the expanded economic partnership.

Trump frames deal as product of personal rapport

Trump highlighted his personal relationship with PM Modi, saying their strong bond helped propel the outcome.

“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most,” he wrote.

The president's remarks come amid a wider backdrop of tariff tensions between Washington and New Delhi. In 2025, the US imposed steep tariffs - in some cases reaching as high as 50% - on Indian imports in response to New Delhi's purchase of Russian oil, a policy that drew criticism from Indian officials as unfair and commercially harmful.

Shift away from Russian oil

Trump also claimed that Prime Minister Modi had agreed to stop buying Russian oil and instead increase energy imports from the United States and potentially Venezuela.

“He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump wrote.

He framed the move as part of broader efforts to weaken Russia's war effort in Ukraine.

“This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” he added.

PM Modi responds: Deal benefits both nations

Prime Minister Narendra Modi replied on X, welcoming the outcome and thanking Trump for the agreement.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi wrote.

He characterised the India-US trade deal as a boost for cooperation between two of the world's largest democracies.“When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”

PM Modi also praised Trump's leadership on global issues and pledged continued collaboration:“India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights.”

US Ambassador calls India-US relationship 'limitless'

US Ambassador to India Sergio Gor praised the newly announced trade agreement between the United States and India, highlighting the strong personal rapport between President Donald Trump and Prime Minister Narendra Modi.

Writing on X (formerly Twitter), Gor said:“As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!”

This is a developing story. Please check back for updates.

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