India-US trade deal | Here's what PM Modi and President Trump said

Late on Monday night, US ambassador Sergio Gor sparked a social media buzz by saying Prime Minister Narendra Modi had held a phone call with President Donald Trump, indicating a major announcement.

Within an hour, Trump announced that India and the US had stuck a trade deal, adding that reciprocal tariffs on Indian goods in the US would now attract 18 per cent from the existing 25 per cent levy.

What Trump said

"It was an honour to speak with Prime Minister Modi. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine," Trump said.

The US president said India would buy US oil and even Venezuelan oil that would help stop the Russian war on Ukraine.

"He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!"

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO," Trump added.

Further, Trump said that India would buy more American goods, including US energy, technology, agricultural and coal.

"The Prime Minister also committed to "BUY AMERICAN," at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most," Trump said.

What Modi said

Within minutes of Trump's post, PM Modi confirmed the deal, saying that the reciprocal tariffs had been reduced to 18 per cent.

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," Modi said on X.

He added that the deal will benefit the people and unlock immense opportunities for mutually beneficial cooperation.

"When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. 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," Modi said.