In a major breakthrough in bilateral relations, US President Donald Trump announced a new trade deal with India that cuts the reciprocal tariff on Indian goods from 25 per cent to 18 per cent. Trump made the announcement shortly after speaking with Indian Prime Minister Narendra Modi, describing his decision as a gesture of “friendship and respect.”
According to Trump’s post on Truth Social, the reduced tariff will take effect immediately and follows discussions aimed at resolving longstanding trade disputes between the two countries. Prime Minister Modi welcomed the move, thanking Trump on social media and saying that “Made in India” products will now benefit from the lower tariff on exports to the United States.
The announcement comes amid broader negotiations over trade and energy, including Trump’s comments that India would reduce its purchases of Russian oil in favour of US and other sources — a condition he linked to global geopolitical developments, including the war in Ukraine.
The tariff cut is expected to ease tensions that had escalated in recent months over steep duties on Indian exports.