US-India trade deal: President Trump announces trade deal, lowers tariffs from 25 per cent to 18 per cent

India and the US agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18 per cent from current 25 per cent US President Donald Trump said on Monday after a phone conversation with Prime Minister Narendra ModiThe prime minister said he was delighted that Made in India products will now have a reduced tariff of 18 per centWonderful to speak with my dear friend President Trump today Delighted that Made in India products will now have a reduced tariff of 18 per cent Big thanks to President Trump on behalf of the 14 billion people of India for this wonderful announcement Modi saidThe prime minister said when two large economies and the worlds largest democracies work together it benefits the people and unlocks immense opportunities for mutually beneficial cooperationPresident Trumps leadership is vital for global peace stability and prosperity India fully supports his efforts for peace he said on XModi noted that he looked forward to working closely with Trump to take the bilateral partnership to unprecedented heights without mentioning many of the other issues that figured in Trumps post on social mediaTrump said India will move forward to reduce tariffs and non tariff barriers against the US to zero adding New Delhi would buy American goods including energy worth more than USD 500 billionOut 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 the US president said on social mediaIndia will likewise move forward to reduce their tariffs and non tariff barriers against the United States to zero he saidTrump said Modi also committed to buy American goods at much higher level in addition to over USD 500 billion dollars of US energy technology agricultural coal and many other productsOur 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 saidIn his remarks Modi said When two large economies and the worlds largest democracies work together it benefits our people and unlocks immense opportunities for mutually beneficial cooperationI look forward to working closely with him to take our partnership to unprecedented heights he addedTrump said Modi and he also discussed ending the war between Russia and UkraineHe agreed to stop buying Russian Oil and to buy much more from the United States and potentially Venezuela the US president saidThis will help end the war in Ukraine which is taking place right now with thousands of people dying each and every week Trump saidTrump and Modi last spoke on phone in October 2025 The two leaders had agreed at a meeting in February last year to finalise the first tranche of a bilateral trade agreement by the autumnThough the two sides held several rounds of negotiations forward movement on the trade deal stalled after Trump imposed 50 per cent tariffs on Indian goods including the 25 per cent punitive tariffs for Indias procurement of Russian crude oilThe ModiTrump phone talks came on a day External Affairs Minister S Jaishankar travelled to Washington DCIndia has now lower tariff compared to competing export economies officials saidThey cited 19 per cent American tariffs on Indonesia 20 per cent on Vietnam 20 per cent on Bangladesh and 34 per cent on ChinaOfficial sources last week said India and the US have made very significant progress in the negotiations for the trade dealThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever