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India-US Trade Deal Cuts Tariffs to 18%, Modi Thanks Trump for "Wonderful" Move

Prime Minister Narendra Modi announced a major trade agreement with the United States, reducing the US tariff on 'Made in India' products to 18%. The deal, confirmed by former US President Donald Trump, is set to take effect immediately and is linked to broader energy and geopolitical cooperation. As part of the agreement, India has committed to halting purchases of Russian oil and significantly increasing imports of American energy and other goods. Both leaders framed the partnership as a benefit to their people and a step toward global stability.

Key Points: India-US Trade Deal: Tariffs Cut to 18% on Made in India Goods

  • US tariff on Indian goods cut from 25% to 18%
  • Deal linked to energy cooperation & geopolitical goals
  • Modi commits to stop buying Russian oil
  • India to purchase over $500B in US products
2 min read

'Made in India' products will now have reduced tariff of 18 pc in US: PM Modi

PM Modi announces reduced 18% US tariff on Indian products following a trade deal with President Trump, aiming to boost bilateral trade and cooperation.

"Delighted that 'Made in India' products will now have a reduced tariff of 18 per cent. - Narendra Modi"

New Delhi, Feb 2

In a significant development, Prime Minister Narendra Modi on Monday said that 'Made in India' products will now have a reduced tariff of 18 per cent, as US President Donald Trump said India and the United States had reached a trade deal.

PM Modi posted on X that it was "wonderful 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 1.4 billion people of India for this wonderful announcement," Prime Minister posted on X.

"When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace," PM Modi further stated.

He said he looks forward to working closely with Trump to "take our partnership to unprecedented heights"

Earlier, in a post on Truth Social, US President said the agreement would immediately reduce the U.S. reciprocal tariff on Indian goods from 25 per cent to 18 per cent, calling it a major shift in bilateral trade ties linked to energy cooperation and broader geopolitical goals.

Trump said the two leaders discussed "many things, including Trade, and ending the War with Russia and Ukraine." He claimed that Modi agreed to stop buying Russian oil and to increase purchases from the United States and, potentially, from Venezuela.

"This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!" Trump wrote.

According to Trump, the trade deal would take effect immediately. He said India would "move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO."

Trump also said Modi committed to "BUY AMERICAN" at a much higher level. He added that India would purchase "over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products."

- IANS

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Reader Comments

S
Sarah B
Interesting development. While the tariff reduction is positive, the article mentions India agreeing to stop buying Russian oil. This could have significant implications for our energy security and costs. Hope the details are favorable.
V
Vikram M
Good step, but let's see the fine print. "Reducing tariffs and non-tariff barriers to zero" for the US sounds like a very big commitment. We must ensure our domestic industries are protected. Jai Hind!
P
Priya S
This is a win-win! More market access for our goods and potentially more jobs at home. The geopolitical angle is complex, but strong India-US ties are crucial. Well done to our negotiators.
R
Rohit P
$500 billion in purchases from the US? That's an astronomical number. Where is this money coming from? I hope this deal doesn't become a one-sided burden on our economy. Need more transparency.
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Karthik V
Great for sectors like textiles, handicrafts, and engineering goods. Our artisans and small manufacturers finally get a level playing field. Let's make the most of this opportunity!

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