Tariffs reduced from 25% to 18%: PM Modi, Trump announce India-US trade pact

Following discussion with Us President Donald Trump on an optimistic trade deal, Prime Minister Narendra Modi declared that Made in India products will now see a reduced tariff of 18 per cent.

In a statement on X, he thanked the US President on 'behalf of the 1.4 billion people of India' for the announcement, a result of discussions between the two leaders amid the backdrop of Trump levying 25 per cent tariffs on India.

The reciprocal tariffs have been reduced from the initial 25 per cent to 18 per cent, as Trump claimed on Truth Social that Modi "agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela."

To mirror the decrease, the US President also stated that New Delhi would abolish the tariffs and non-tariff barriers on imports from the United States.

Furthermore, Modi, in his statement, wrote that Trump's efforts to achieve and sustain peace are supported by India, "President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace."

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