India-US Trade Deal: US President Donald Trump Cuts Tariffs To 18%, Holds Talks With PM Modi

India-US Trade Deal: United States President Donald Trump on Monday announced a reduction in the "reciprocal tariff" on Indian goods, lowering it to 18% from the earlier 25%. The India-US trade deal was finalised after Prime Minister Narendra Modi "agreed to stop buying Russian oil," wrote Trump in a post on Truth Social.

India's discontinuation of buying oil from Russia would help in "END THE WAR in Ukraine", as per Trump's post on Truth Social. The announcement on India-US trade deal came hours after PM Modi and US President Trump held talk over a phone call. The Ministry of External Affairs (MEA) is yet to release a statement regarding the India-US trade deal.

"It was an Honor to speak with Prime Minister Modi, of India, this morning. 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. He agreed to stop buying Russian Oil, and to buy much more from the United States, and, potentially, Venezuela," wrote Donald Trump on Truth Social.

US Reduces Tariffs on Indian Goods

The US has finalised a trade deal with India and will reduce reciprocal tariffs on Indian goods to 18%.

"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%," read Donald Trump's post.

As part of the deal, India is also supposed to reduce their tariffs and non tariffs barriers against the United States, added Trump in his post, while highlighting that India also committed to "Buy American" at a much higher level.

Trump stated that New Delhi will purchase over $500 billion worth of US exports under the understanding. The list includes US energy, technology, agricultural products, coal and other goods.

US Ambassador To India Confirms Modi-Trump Talks

The announcement followed confirmation from US Ambassador to India Sergio Gor about a leader-level conversation. Gor posted on social media platform X: "President Trump just spoke with Prime Minister Modi. STAY TUNED..." Trump later described that call as a privilege, and again underlined the personal chemistry between the two leaders.

India-US Ties

The latest understanding emerged while External Affairs Minister S Jaishankar began a three-day visit to the United States. Jaishankar is in the country for a ministerial meeting focused on the critical minerals supply chain. The visit adds another diplomatic layer as both sides handle trade, energy and security issues.

Relations between India and the United States had cooled after Trump imposed 50 per cent tariffs on India last year, including an extra 25 per cent linked to India's earlier Russian oil purchases. Tensions also rose after Trump's claim that the United States had ended the India-Pakistan conflict, a statement strongly rejected by New Delhi.