US reduces tariffs on goods imported from India to 18 percent; a new era of trade relations to begin; what PM Modi and Trump said?
The United States has reduced tariffs on goods imported from India to 18 percent.
US President Donald Trump and Prime Minister Narendra Modi announced this on social media.
President Trump also stated that a trade agreement had been reached between India and the United States. However, the Indian Prime Minister's post on X (formerly Twitter) did not mention the trade deal.
Trump wrote on Truth Social, "A trade agreement has been reached between the United States and India, under which the US has reduced reciprocal tariffs from 25 percent to 18 percent."
Meanwhile, Prime Minister Modi said, "I am happy to learn that tariffs on Made in India products have now been reduced to 18%."
Last August, Trump imposed a 25 percent tariff on India for buying oil from Russia, which was in addition to the existing 25 percent tariff.
This brought the total tariff to 50 percent. This was the highest tariff the US had imposed against any country worldwide.
On Monday, Trump said that India would reduce its tariffs against the US to zero.
Prime Minister speaks with Trump
Prime Minister Narendra Modi spoke with President Trump today. Modi thanked President Trump on behalf of the 1.4 billion people of India for the important announcement of reducing tariffs on Indian products to 18 percent.
Modi said that when two large economies and the world's largest democracies work together, it not only benefits our people but also opens up immense opportunities for mutually beneficial cooperation.
PM Modi said, “President Trump's leadership is extremely important for global peace, stability, and prosperity. India fully supports his efforts for peace.”
PM Modi posted on X:
It was wonderful speaking with my dear friend President Trump today. Very happy to learn that tariffs on products made in India will now be reduced to 18 percent. Many thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.
When two large economies and the world's largest democracies work together, it benefits our people and opens up immense opportunities for mutually beneficial cooperation.
President Trump's leadership is extremely important for global peace, stability, and prosperity. India fully supports his efforts for peace.
I look forward to working with him and taking our partnership to unprecedented heights.
A New Era of Trade Relations
Under this new agreement, the US will reduce tariffs on Indian products, while India will move rapidly towards eliminating tariff barriers on American goods. This reciprocal tariff agreement was reached at Modi's special request and will create immense opportunities for exporters and businesses in both countries. This will help reduce the trade imbalance between India and the US and take the economic partnership to unprecedented heights.
Efforts for Peace and Stability
In addition to trade, the two global leaders also held very serious discussions on ending the ongoing war between Russia and Ukraine. Trump claims that Modi has fully agreed to stop buying oil from Russia and instead purchase oil from the US and Venezuela. The main objective of this strategic move is to stop the bloodshed in Ukraine and ensure India's effective role in restoring global peace.