New Delhi/Washington: US President Donald Trump said the United States and India had reached an understanding to substantially lower American tariffs on Indian exports, following a phone conversation with Prime Minister Narendra Modi.
According to Donald Trump, duties on Indian goods entering the US market will be brought down to 18 per cent from the earlier 50 per cent level. The move also includes the withdrawal of a separate 25 per cent penalty tariff that Washington had imposed on India over its purchase of Russian crude oil. The removal of this surcharge was confirmed by US embassy spokesperson Chris Elms.
Soon after the announcement, Prime Minister Modi welcomed the decision, describing it as a constructive step that would strengthen economic ties between the two countries. In a message shared on social media platform X, Modi said he was pleased that Indian-made products would now face lower trade barriers in the US and thanked Trump for the gesture.
“When two major economies and the world’s largest democracies collaborate, it creates meaningful opportunities for our people,” Modi said, adding that he hoped to take the India–US partnership to new levels of cooperation.
US Ambassador to India Sergio Gor, who first disclosed details of the leaders’ conversation, indicated that Modi and Trump were likely to meet in person in the coming months.
Trump said the discussion covered trade issues as well as the ongoing conflict between Russia and Ukraine. He praised Modi as an influential global leader and claimed that India had agreed to reduce its reliance on Russian oil while increasing imports of energy and other commodities from the US and possibly Venezuela. There was no immediate confirmation from the Indian side regarding these claims.
The US President further stated that the proposed trade arrangement would see India lowering both tariff and non-tariff barriers on American products, while sharply expanding purchases of US energy, agricultural goods, technology and coal. He suggested that these imports could cross $500 billion in value.
Trump also shared images associated with India on his social media account, including a photograph of India Gate and a magazine cover featuring himself alongside Modi, underscoring what he described as a strong personal relationship between the two leaders.
India’s Ministry of External Affairs did not issue a statement, leaving it unclear whether the announcements reflect a finalised agreement or progress in ongoing negotiations. The two countries have been engaged in talks aimed at resolving trade irritants and boosting bilateral commerce.
The development prompted political reactions in India, with Congress leader Jairam Ramesh questioning why details of the leaders’ conversation emerged through US sources rather than official Indian channels. In a post on X, he said it appeared to be an emerging pattern where information about India’s diplomatic engagements was first revealed by President Trump or his representatives.
