Prime Minister Narendra Modi announced on Monday that Indian goods will face reduced US tariffs of 18% after a phone call with President Donald Trump, who said the two sides had struck a trade deal that would see New Delhi cut its tariffs to zero and buy more than $500 billion worth of American goods, including energy.
“The prime minister has pledged to “buy American” at a much higher level, in addition to more than $500 billion in U.S. energy, technology, agriculture, coal and many other products. (REUTERS file photo for representation)The announcement ended nearly 12 months of tense talks that saw bilateral relations falter and slapped India with some of the highest. duty in the world
The first mention of the phone call came in the form of a social media post from US Ambassador Sergio Gore at 9.16am, followed by a lengthy post by Trump on Truth Social more than an hour later and then a social media post by the Prime Minister about two hours later.
“Great to talk to my dear friend President Trump today. Delighted to see 18% tariff reduction on Made in India products now. Thank you very much President Trump On behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said at X.
“When two large economies and the world’s largest democracies work together, it benefits our people and opens up enormous opportunities for mutually beneficial cooperation,” he added.
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There was no mention of a trade deal in Modi’s post but Union Minister Ashwini Vaishnab confirmed on X that India and the US had reached a trade deal, which she called a “win win”.
The new tariff is lower than the 19% rate faced by Pakistan.
Earlier at Truth Social, Trump said it was an “honour” to speak with Modi and called him “one of his greatest friends”. He also said that both the leaders were “two people who get things done” and agreed to stop buying India Russian oiland buy $500 billion worth of US energy and technology.
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“He is one of my greatest friends and a strong and respected leader of his country. We talked about many things, including trade and ending the wars with Russia and Ukraine,” the US president said.
Trump added that India had “agreed to stop buying Russian oil and buy more from the United States and, potentially, Venezuela”, and will also move to reduce tariffs and non-tariff barriers against the US to zero. Trump said this would “help end the war in Ukraine”.
“Out of friendship and respect for Prime Minister Modi and, at his request, effective immediately, we have agreed to a trade agreement between the United States and India, whereby the United States will charge a reduced reciprocal tariff, bringing it down from 25% to 18%. They will likewise move to reduce their tariff and non-tariff barriers against the United States,” the US president said.
Trump added, “The prime minister has committed to a much higher level of ‘Buy American’ in addition to more than $500 billion in US energy, technology, agriculture, coal and many other products.”
Modi also praised Trump. “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,” he said.
After almost a year, the talks progressed New Delhi And Washington opened trade talks during Modi’s US visit last February. Over the past 12 months, the two sides have held numerous informal consultations as well as six formal talks in an effort to get the trade deal over the line. Recently, a delegation led by Deputy US Trade Representative Rick Switzer visited India in December 2025.
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Trump’s lengthy post on Truth Social only mentioned reciprocal tariffs but a White House official confirmed to HT that the other 25% tariff would be waived “as part of India’s deal to stop buying Russian oil”. “The final tariff will be 18%,” the official said.
Speaking to HT, Under Secretary of State Jacob Helberg welcomed the trade deal.
“We are excited that the successful conclusion of the agreement actually creates and adds a lot of positive momentum to deepen our industrial cooperation,” Helberg told HT ahead of a crucial critical minerals ministerial dialogue. Washington DCin the presence of External Affairs Minister S Jaishankar It is expected to stay.
“We think that now that the trade deal is finalized, it’s actually going to help build a lot of momentum and free up a lot of political oxygen that can be directed toward specific, strategic projects,” Helberg added.
In X, Vaishnav called the US and India “natural allies”. “The US and India have complementary strengths. Both countries can co-create and co-develop technologies that will benefit the world. The trade agreement between the US and India will lead to a bright future for both countries. The India-US trade agreement is a win-win deal. Citizens and industries of both countries will greatly benefit from this agreement,” he added.
US Ambassador to India Sergio Gore Trump has already confirmed that he spoke to Modi.
“As I’ve said many times, President Trump truly considers PM Modi a great friend! Thrilled with the trade deal news this evening. The relationship between the US and India has limitless potential!” He posted on X.
No details of the trade deal were immediately available but the announcement came days after India and the European Union sealed a trade deal, which both leaders called the “mother of all deals”.
Earlier in the evening, Trump posted a picture of India Gate. “India is beautiful Triumphal Arch. We will be the best of them all!” He said in another post, Trump shared a picture of Modi and him on the cover of India Today magazine.
Before Monday, Trump and Modi last spoke on the phone in October 2025. The two leaders at a meeting in February last year agreed to finalize the first phase of a bilateral trade agreement by autumn. Although there have been several rounds of talks between the two sides, progress on the trade deal stalled after Trump imposed a 50% tariff on Indian goods along with a 25% punitive tariff.
Russia became one of India’s biggest energy suppliers after New Delhi began buying discounted Russian crude when the West imposed sanctions for attacking Moscow. Ukrainethese purchases have started to decline in recent months The Indian side maintains that its energy purchases will be decided according to market conditions and the need to ensure energy security.
Bilateral relations were also affected by other factors, including Trump’s repeated calls for a ceasefire to end the brief but intense conflict between India and India. Pakistan Last May, the continued criticism of senior US officials over tightening US immigration rules and India’s energy and defense ties with Russia.
