US President Donald Trump on Monday announced that he would reduce reciprocal tariffs from 25 per cent to 18 per cent, shortly after saying he had spoken with Prime Minister Narendra Modi. The announcement signalled a thaw in India-US ties, which had been marred by steep tariffs.
However, an additional 25 per cent tariff on Indian exports to the US remains in place, as per Trump's Truth Social post. Responding to Trump’s Truth Social post, Prime Minister Narendra Modi said “Made in India” products will now attract 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," PM Modi tweeted.
Before Trump’s big announcement, there was significant buildup, with the US President sharing an image of himself with PM Modi on the Truth Social platform. The post contained no text, only the cover of India Today magazine’s "Newsmakers of the Year 2025" edition, featuring pictures of both leaders.
This was followed by Gor’s message saying "Stay tuned," along with, "President Trump just spoke with Prime Minister Modi."
Speaking to India Today after President Trump’s announcement, US envoy to India Sergio Gor said, "We are thrilled to have reached this successful outcome."Gor added that President Trump also recalled his last visit to India and said that Prime Minister Narendra Modi had invited him to return.
However, while talking to India Today, Gor said that the tariffs have been brought down to 18 per cent from 50 per cent.
"The final number will be 18, and whether that takes an hour or two days, there are technicalities to work out and paperwork to be signed, but the number will be 18," Gor told India Today TV. He also revealed that he had sent the India Today magazine cover to Trump during Republic Day and expressed surprise that Trump went ahead and posted it on Monday.
INDIA, US AGREE TO TRADE DEAL: TRUMP
Also shedding light on the much-awaited US-India trade deal, which had faced several roadblocks with New Delhi adamant about not opening its agriculture sector to Washington, Trump said that an agreement is finally on the cards.
Trump said he lowered the reciprocal tariffs following discussions with PM Modi, describing the move as a gesture of "friendship and respect."
"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 Reciprocal Tariff, lowering it from 25% to 18%," he wrote on Truth Social.
During the call, Trump further said that Prime Minister Narendra Modi had agreed to stop buying Russian oil and to divert India’s oil imports to the US and Venezuela.
Celebrating the development of PM Modi agreeing to stop buying oil from Russia, Trump went on to write, "This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO."
"It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela," he posted on Truth Social.Claiming that PM Modi has promised to buy more than $500 billion worth of American energy, technology, agricultural, coal, and other products, he said, "Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most."