Prime Minister Narendra Modi on Sunday welcomed US President Donald Trump’s decision to lower tariffs on Indian goods, describing the move as one that unlocks significant opportunities for cooperation between the two countries.
Minutes after President Trump announced the reduction on his social media platform, the Prime Minister took to X to express his appreciation, calling the development a boost for “Made in India” products entering the US market.
“Delighted that Made in India products will now have a reduced tariff of 18 per cent,” PM Modi said, thanking President Trump on behalf of India’s 1.4 billion people.
The Prime Minister said he had a “wonderful” conversation with President Trump and underlined the broader significance of the decision, noting that closer economic cooperation between the world’s two largest democracies benefits people on both sides.
PM Modi also said that when two major economies work together, it opens doors for mutually beneficial growth, adding that India supports President Trump’s efforts aimed at global peace, stability, and prosperity. He said he looked forward to strengthening the partnership further.
President Trump, while announcing the tariff reduction, described the move as a “trade deal” and referred to PM Modi as a close friend and a respected leader.
Trade signals positive momentum
The US India Strategic Partnership Forum described the tariff reduction as an important and positive first step in strengthening bilateral trade relations.
While the detailed terms of the agreement are yet to be finalised, the announcement reflects political intent on both sides to move towards a broader US-India bilateral trade agreement. Such an agreement is expected to address issues related to tariffs, market access, non-tariff barriers, and trade across multiple sectors.
How tariffs on Indian goods evolved
The latest decision comes after months of tariff fluctuations on Indian exports to the US.
Timeline of key developments
- April 2, 2025: The US imposed a 26% reciprocal tariff on several Indian imports as part of global tariff actions.
- April 10, 2025: The tariffs were paused for 90 days, with a 10% duty retained on all US imports.
- July 31, 2025: A 25% tariff was announced on Indian goods, along with a warning linked to India’s purchase of Russian oil.
- August 7, 2025: Tariffs were raised to 50%, the highest imposed on any US trade partner at the time.
- February 2, 2026: The US announced a reduction in tariffs on Indian goods to 18%.
The latest rollback marks a significant easing of trade tensions and sets the stage for deeper engagement between India and the United States.