PM Modi Welcomes Trump's Tariff Cut, Confirms India-US Trade Deal: 'Big Thanks On Behalf Of 1.4 Billion People'

Prime Minister Narendra Modi on Monday confirmed and welcomed a trade agreement with the United States, saying tariffs on Indian-made products will be reduced to 18%. In a post on social media platform X on Monday, Modi said he had spoken with US President Donald Trump and praised the announcement. "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," he wrote. Modi said the agreement would strengthen cooperation between the two countries, describing India and the US as "two large economies and the world’s largest democracies". "When two large economies and the world’s largest democracies work

together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation," he added. The Prime Minister also praised Trump’s global role, saying: "President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace." He concluded by saying he looked forward to working closely with the US president to take bilateral ties "to unprecedented heights".

What Trump Said About the Trade Deal

President Trump announced the trade agreement after a call with PM Modi, saying that the pact will see tariffs on each other’s goods reduced. In a post on his Truth Social platform on Monday, Trump said he had spoken with the Indian Prime Minister and that the two leaders had agreed to move forward with the deal "effective immediately". Under the agreement, the United States will lower its reciprocal tariff on Indian goods from 25% to 18%, Trump said. He added that India would also reduce its tariffs and non-tariff barriers on US products to zero. "It was an Honor to speak with Prime Minister Modi, of India, this morning," Trump wrote, describing the Indian leader as "one of my greatest friends and, a Powerful and Respected Leader of his Country". Trump said the discussions also covered the war between Russia and Ukraine and energy trade. According to his post, Modi agreed to stop buying Russian oil and to purchase more energy from the United States and "potentially Venezuela". "He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," Trump wrote, adding that the move would help "END THE WAR in Ukraine". The US President also said Modi had committed to buying American goods "at a much higher level", including more than $500bn worth of US energy, technology, agricultural, coal and other products. Trade negotiations between the two countries had stalled last year over several issues, including India’s continued purchases of Russian oil. In August, the US imposed a 25% tariff on Indian goods, on top of a separate reciprocal levy that had taken effect earlier the same month. Trump said in his post that the reciprocal tariff rate would now be reduced to 18% with immediate effect. The announcement comes a week after India concluded a major free trade agreement with the European Union, which PM Modi had described as the "mother of all deals".