18% US tariff on ‘Made in India’ products, PM Modi said after a phone call with President Trump

indicates a positive turn at a Bilateral relationship Pressured by multiple issues, Prime Minister Narendra Modi announced on Monday after a phone conversation with President Donald Trump that “Made in India” products will “now” attract a “lower tariff of 18%” in the US.

The move is expected to significantly reduce the impact of the 50% penalty tariffs imposed on India by Mr Trump in August 2025.

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“It is good that products made in India now have a lower tariff of 18%,” Mr Trump thanked. “When two of the largest economies and the world’s largest democracies work together, it benefits our people and opens up immense opportunities for mutually beneficial cooperation,” Mr Modi said in his post on X.

A few minutes ago, Mr. Trump announced on the social media platform Truth Social that the US and India had “agreed” to a trade deal.

“… We have agreed to a trade agreement between the United States and India whereby the United States imposes a reduced reciprocal tariff, reducing it from 25% to 18%,” Mr Trump said. He further claimed, “…they will go ahead to reduce their tariffs and non-tariff barriers against the United States to ZERO”.

Commerce and Industry Minister Piyush Goyal welcomed the development.

The Ministry of External Affairs is yet to respond to some queries regarding the announcement and details shared by Mr Trump. The US president said in a social post that India would agree to “stop buying Russian oil” during their discussion. India will “buy more from the United States and potentially Venezuela,” he said. Mr Trump said Mr Modi was “committed” to increasing purchases of US products by $500 billion.

The two announcements by Mr Modi and Mr Trump drew a swift response from the Congress party, with its general secretary (communications) Jairam Ramesh saying “it looks like Mr Modi has finally capitulated”.

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External Affairs Minister S. The phone conversation between Mr. Modi and Mr. Trump took place when Jaishankar began his visit to the United States from February 2 to 4, where he will attend a crucial minerals ministerial meeting convened by US Secretary of State Marco Rubio.

“The ministry will focus on supply chain resilience, clean energy transitions and strategic cooperation in critical minerals,” the MEA announced, adding that Mr. Jaishankar would “hold meetings with senior members of the US administration” during the ongoing tour. Apart from India, dozens of other countries with significant national mineral production like Kenya, South Korea, Democratic Republic of Congo will be part of the meeting. The Minister aims to reduce the dependence of critical minerals on China and create a supply chain that includes the entire supply chain from mining, processing, recycling, pricing mechanism. Participating countries are also expected to sign a non-binding document.