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India-US Trade Deal Cuts Tariffs to 18%, Modi & Trump Hail Historic Pact

Union Minister Nitin Gadkari praised Prime Minister Narendra Modi and US President Donald Trump for finalizing a historic trade deal that reduces US tariffs on Indian goods to 18%. President Trump announced the agreement on his Truth Social platform, citing friendship with PM Modi and securing a commitment for India to increase purchases of American products. The deal follows previous US tariffs imposed on India, which were partly linked to India's crude oil imports from Russia. Prime Minister Modi expressed delight on social media, thanking Trump for the announcement that benefits "Made in India" products.

Key Points: India-US Trade Deal Finalized, Tariffs Slashed to 18%

  • Tariffs on Indian goods cut from 25% to 18%
  • Deal aims to boost trade and investment confidence
  • PM Modi commits to 'BUY AMERICAN' initiative
  • Follows earlier US tariffs tied to Russian oil imports
3 min read

India-US trade deal "sets stage for deeper trade, investment, shared prosperity": Nitin Gadkari

Nitin Gadkari lauds PM Modi and President Trump as the India-US trade deal reduces tariffs, boosting business confidence and shared prosperity.

"Today marks a defining step forward in India-US economic relations - Nitin Gadkari"

New Delhi, February 3

Union Minister Nitin Gadkari on Tuesday lauded Prime minister Narendra Modi and US President Donald Trump over the announcement of the India-United States trade deal under which Washington has reduced tariffs on Indian goods to 18 per cent, stating that it will further strengthen the trust between both countries and will significantly boost confidence in business, trade, and investment.

Taking it to X, Gadkari stated that the agreement opens new avenues for growth and cooperation between the two countries.

"Today marks a defining step forward in India-US economic relations as the trade deal is finalised with tariffs reduced to 18%, opening new avenues for growth and cooperation. My heartfelt congratulations to PM Narendra Modi and President Donald Trump for their leadership in securing this historic outcome. The agreement strengthens trust, boosts business confidence, and sets the stage for deeper trade, investment, and shared prosperity for both nations," he wrote.

Earlier, US President Trump announced a trade deal with India on Monday (local time), months after Washington imposed 50 per cent tariffs on Indian goods in August 2025. Unveiled on Trump's social media platform Truth Social, the deal outlines significant tariff cuts and includes claims that India would halt Russian oil purchases. Earlier, Trump had levied a 50 per cent duty on India, with 25 per cent tied to crude imports from Russia, as administration officials asserted that India's oil buying supported Russia's war efforts.

Trump, in his Truth Social post, wrote, "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 Reciprorocal 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. The Prime Minister also committed to 'BUY AMERICAN,' at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products."

"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. Thank you for your attention to this matter!" Trump said.

Following Trump's post, Prime Minister Modi, on X, said it was wonderful to speak with his "dear friend President Trump" and expressed delight that "Made in India products will now have a reduced tariff of 18%".

"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," PM Modi wrote in a post on X.

- ANI

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Reader Comments

S
Sarah B
While the tariff reduction is good, the article mentions India halting Russian oil purchases. I hope our energy security and strategic autonomy weren't compromised for this deal. We need to see the fine print.
P
Priya S
Wonderful news! This will create so many jobs here. Our MSMEs and startups will get a huge boost. Kudos to the negotiating team for securing this. Hope it leads to more tech and investment partnerships.
R
Rohit P
The "Buy American" commitment worries me a bit. We should ensure this is reciprocal and doesn't hurt our own manufacturing and 'Aatmanirbhar Bharat' goals. Balance is key.
V
Vikram M
From 50% to 18% is a massive relief! This deal shows the importance of strong leadership and personal diplomacy. Hope the benefits reach the small and medium enterprises on the ground.
K
Kavya N
Good step forward. But let's not celebrate too early. The US has a history of changing trade policies with new administrations. We need long-term, stable agreements, not just deals based on "friendship".

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