US President Donald Trump on Monday announced a new trade deal with India, marking a significant breakthrough after nearly a year of tense negotiations that had strained bilateral economic ties. The agreement provides for lower reciprocal tariffs and expanded market access, while President Trump claimed that India would halt purchases of Russian oil and substantially increase imports of American goods.
India has officially confirmed the tariff reduction component of the deal. Prime Minister Narendra Modi welcomed the development following a phone call with President Trump, describing it as a positive step for trade between the two countries. Union Minister Ashwini Vaishnaw also termed the agreement a “win-win” trade deal, underscoring its mutual benefits.
According to Prime Minister Modi, Indian exports to the United States will now face a reduced tariff of 18 per cent. This replaces the earlier 25 per cent reciprocal tariff and places India at a more favourable level than Pakistan, which currently faces a 19 per cent tariff.
In a post on social media, Modi said, “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 added that cooperation between “two large economies and the world’s largest democracies” would unlock immense opportunities for mutually beneficial growth.
The Prime Minister also praised President Trump’s leadership, calling it “vital for global peace, stability, and prosperity,” and said he looked forward to working closely with him to take the India–US partnership to “unprecedented heights.”
While Washington has highlighted broader claims including energy and large-scale import commitments, New Delhi has so far limited its confirmation to the tariff reduction. Further details of the agreement and its implementation are expected to emerge in the coming days, as industry and policymakers assess its impact on trade flows and strategic relations between the two countries.
