India-US Trade Deal Cuts Tariffs to 18%, Boosting Make in India

In a post on X, Patel noted that the agreement would significantly bolster the 'Make in India' initiative by expanding market access and creating fresh opportunities for MSMEs, farmers, youth, and businesses in both nations.

Extending his congratulations to PM Modi for facilitating the deal, the Gujarat CM stated that this landmark agreement and the resulting tariff reductions are truly great news for both nations.

"A historic step forward in India-US relations. Under the visionary leadership of Hon'ble PM @narendramodi Ji, the landmark India-US trade agreement and reduced tariffs on Made in India products are truly great news for both nations. This will significantly strengthen #MakeInIndia, expand market access, and create fresh opportunities for Indian MSMEs, farmers, youth, and businesses on both sides. When the world's largest democracies work together, it accelerates growth, innovation, and shared prosperity. Congratulations to Hon'ble PM on this major milestone for India's economic journey," said Patel.

Earlier, US President Donald 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.

But as the United States and India move toward finalising a newly announced trade agreement, US International Development Finance Corporation Deputy CEO Nisha Biswal noted that while months of negotiations have shaped much of the framework, key implementation details are still awaited.

"Since we have not seen any implementation guidance or details, we have to wait and see what that looks like. The US and India have been negotiating text-based agreements for many months, so a lot of these details have already been worked out by the two negotiators. Whether the terms remain the same or shift in the final stretch of the agreement is something we need to watch for," Biswal said.

- ANI