PM Modi thanks 'dear friend' Trump for tariff reduction, hails strong US–India partnership

“Delighted that Made in India products will now have a reduced tariff of 18 per cent,” PM Modi said in a post on X, shortly after Trump announced the tariff cut on Truth Social.

Donald Trump announced on Monday that the United States and India have agreed to a new trade deal following a phone call with Indian Prime Minister Narendra Modi.

As part of the agreement, the United States will reduce its reciprocal tariff on Indian imports from 25% to 18%, effective immediately.

The prime minister described his conversation with Trump as “wonderful,” calling the US president “one of my greatest friends, and a powerful and respected leader of his country.”

He 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.”

PM Modi also expressed support for Trump’s global initiatives, saying, “President Trump’s leadership is vital 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.”

The US–India Strategic Partnership Forum (USISPF) said the tariff reduction “marks an important and positive first step,” noting that the announcement signals strong political will on both sides to move toward a comprehensive bilateral trade agreement covering tariffs, market access, non-tariff barriers, and other trade-related issues across multiple sectors.

In his announcement, Trump also said that India has agreed to halt purchases of Russian oil and instead increase energy imports from the US, a move he framed as supportive of efforts to end the ongoing war in Ukraine.

The deal reportedly includes broader commercial commitments, with India expected to significantly expand purchases of American products across sectors such as energy, technology and agriculture.

Trump’s announcement of a trade deal with India comes a day after New Delhi unveiled its annual budget, parts of which were aimed at mitigating the impact of the 50 per cent tariff imposed by the US on Indian goods.

The development also coincided with External Affairs Minister S Jaishankar’s departure for the United States to attend a ministerial meeting on critical minerals, underscoring the broader strategic context of the agreement.

Negotiations on the trade deal had slowed significantly after India–US relations deteriorated in August, when Washington imposed steep tariffs in response to India’s continued purchase of Russian oil. The move triggered months of diplomatic and economic friction between the two sides.