Trump Announces Major US-India Trade Deal: Tariffs Slashed from 25% to 18% After Call with PM Modi

US President Donald Trump announced a significant bilateral trade agreement with India on Monday, following a phone conversation with Prime Minister Narendra Modi. In a post on his Truth Social platform. 

Trump revealed that the US would immediately reduce reciprocal tariffs on Indian goods from 25% to 18%, citing friendship, respect for Modi, and strategic commitments from India.The announcement comes amid efforts to strengthen US-India ties, which had been strained by previous tariffs linked to India's purchases of Russian oil. 

Trump described Modi as one of his "greatest friends" and a "powerful and respected leader," emphasizing their productive discussion on trade, ending the Russia-Ukraine war, and other global issues.

Tariff Reduction: The US will lower its reciprocal tariff on Indian goods from 25% to 18%, effective immediately, as part of the new trade deal.

India's Commitments: Trump stated that PM Modi agreed to stop purchasing Russian oil and instead increase imports from the US (and potentially Venezuela), while also moving to reduce India's tariffs and non-tariff barriers on US products to zero.

Boost in US Exports: Modi reportedly committed to "Buy American" at a much higher level, including over $500 billion in US energy, technology, agricultural products, coal, and other goods.

Broader Impact: Trump expressed hope that India's shift away from Russian oil would help end the Ukraine conflict, where thousands are dying weekly, and predicted that US-India relations would become even stronger going forward.