PM Modi welcomes new India–US trade deal as Trump cuts tariffs to 18%

India–US trade ties deepen further

Prime Minister Narendra Modi welcomed the India–US trade deal announced by President Donald Trump on Sunday, which lowers reciprocal tariffs on Indian goods from 25 per cent to 18 per cent following a phone conversation between the two leaders.

In a post on X, Modi described his conversation with Trump as warm and productive, hailing the tariff reduction as a boost for Indian manufacturing and bilateral ties.

“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.

When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.

President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace.

I look forward to working closely with him to take our partnership to unprecedented heights,” 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.

When two large economies and the… — Narendra Modi (@narendramodi) February 2, 2026

Earlier, US President Donald Trump on Sunday announced a reduction in reciprocal tariffs on Indian goods to 18 per cent, down from 25 per cent, following a phone conversation with Prime Minister Narendra Modi and what he said was the sealing of a trade deal between the two countries.

The decision effectively brings India’s overall tariff burden down to 18 per cent from the earlier 50 per cent, which had included a 25 per cent punitive levy linked to New Delhi’s purchases of Russian oil.

Detailing the call on Truth Social, Trump said, “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 percent to 18 percent.”

Trump also praised Modi as “one of my greatest friends” and a “powerful and respected leader of his country,” saying the two leaders discussed trade, global security and efforts to end the Russia Ukraine war.