Washington: US President Donald Trump announced a reduction in retaliatory tariffs on India from 25 percent to 18 percent, marking a significant development in bilateral trade ties. The announcement came shortly after a phone conversation with Prime Minister Narendra Modi and was shared by Trump on his social media platform, Truth Social. Trump also confirmed that the US–India trade agreement would come into effect immediately.
In his post, Trump said he discussed several key issues with Prime Minister Modi, including trade and efforts to end the Russia–Ukraine war. He claimed that Modi agreed to stop purchasing oil from Russia and expressed interest in sourcing larger quantities of oil from the United States, along with Venezuela. Trump said he hoped this move would contribute to ending the Ukraine conflict, which he noted was claiming thousands of lives every week.
Trump added that, at Modi’s request, the US had approved a new trade arrangement between the two countries, under which tariffs would be reduced to 18 percent. He also expressed expectations that India would reciprocate by lowering its own tariffs, potentially paving the way for broader duty-free trade. The US President said Prime Minister Modi had committed to increased purchases of American-made goods.
According to Trump, bilateral trade under the new framework could reach nearly $500 billion, spanning sectors such as energy, technology, agriculture, coal, and other products. He said the agreement would further strengthen US–India relations, adding that both leaders had given shape to the deal, though he refrained from sharing additional details.