Trump & Modi Announce US-India Trade Deal: Tariffs Lowered to 18%
- The United States and India have reached a trade agreement that will immediately lower tariffs on goods traded between the two countries, President Donald Trump announced today, February...
- Will reduce its reciprocal tariff on Indian goods from 25% to 18%, Trump said in a post on Truth Social.
- “It was an Honor to speak with Prime Minister Modi, of India, this morning,” Trump wrote.
U.S. And India Announce Trade Deal, Tariffs Reduced
The United States and India have reached a trade agreement that will immediately lower tariffs on goods traded between the two countries, President Donald Trump announced today, . The deal follows a phone call between Trump and Indian Prime Minister Narendra Modi.
Under the agreement, the U.S. Will reduce its reciprocal tariff on Indian goods from 25% to 18%, Trump said in a post on Truth Social. India, in turn, will work to reduce its tariffs and non-tariff barriers against U.S. Products to zero.
“It was an Honor to speak with Prime Minister Modi, of India, this morning,” Trump wrote. “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.”
The agreement also includes a commitment from Modi to increase purchases of American products, including over $500 billion worth of U.S. Energy, technology, agricultural goods, coal, and other products, according to Trump’s announcement.
U.S. Ambassador to India, Sergio Gor, confirmed that the overall tariff rate on Indian exports will be reduced to 18% from a rate of 50% that was in place prior to today.
Prime Minister Modi also acknowledged the agreement, stating in a post on X, “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.” Modi further emphasized the benefits of cooperation between the two nations, stating, “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.” He also expressed support for Trump’s efforts toward global peace and stability.
The trade deal comes after months of negotiations and addresses several sticking points, including India’s previous reliance on Russian oil. Trump had imposed a 25% tariff on India in August of last year in response to those oil purchases, on top of an existing 25% reciprocal levy.
The announcement follows India’s recent completion of a major free trade agreement with the European Union, a development some analysts believed could encourage progress in U.S.-India trade talks.