PM Modi thanks Trump, as US tariffs on Indian exports come down from 50% to 18%

Prime Minister Narendra Modi confirmed the trade deal with the United States on Monday and appreciated President Donald Trump’s leadership, terming it “vital for global peace, stability, and prosperity”.

“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,” PM Modi wrote on X.

‘Two large economies and world’s largest democracies…’

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” the PM added.

“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,” the Indian PM added further on his social media post.

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Trump had imposed a 25% tariff on Indian exports late last year as his deadline to sign a deal with countries had lapsed. Trump later doubled the tariffs on India to 50% as he accused Delhi of continuing to buy oil from Russia and thereby supporting Moscow in its war against Ukraine.

Trade deal, tariff reduction huge fillip for India

The trade deal with the United States is a huge fillip for India, and the reduction in tariffs from 50% to 18% puts it in an advantageous position in comparison to competing economies.

India now has lower tariffs compared to several competing economies. After the announcement, US tariffs on India are 18%, while Indonesia faces 19%, Vietnam 20%, Bangladesh 20%, and China 34%.

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The resilience of Indian negotiators finally ended on a happy note after months of trade tensions and inappropriate criticism from Trump’s trade adviser Peter Navarro several times.

PM Modi and Trump had spoken on multiple instances in recent times, raising hopes of the trade deal being sealed eventually.

‘Limitless potential,’ says US Ambassador Sergio Gor

The deal comes just days after US Ambassador to India Sergio Gor took charge. Just a few minutes before Trump announced the deal, Gor wrote on his handle on X, “President Trump just spoke to PM Modi. STAY TUNED...”

After the trade deal announcement, Gor hailed the development and said the relationship between the United States and India has “limitless potential”.

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In his following post on X, the US Ambassador wrote, “As I have said many times, President Trump genuinely considers Prime Minister Modi a great friend! Thrilled by the news of the trade deal this evening. The relationship between the United States and India has LIMITLESS POTENTIAL!”

Gor also confirmed that the US tariffs had in fact come down from 50 per cent to 18 per cent.

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When asked by CNN News 18 whether the additional 25 per cent tariffs on India have been removed, Gor said, “That is correct. As you saw in the Truth of the President wrote, part of the agreement is that all nations around the world stop buying oil from Russia in order to bring peace. I know the Prime Minister deeply cares about bringing peace in that conflict, as does President Trump. So the number as it gets finalised will be 18 per cent.”

In his Truth Social post, Trump had only mentioned that reciprocal tariffs were being reduced from 25 per cent to 18 per cent with no clarification on the status of the additional 25 per cent tariffs imposed on India later for buying Russian oil.

Commerce Minister Piyush Goyal and Minister of External Affairs Dr S Jaishankar also hailed the deal and retweeted PM Modi’s post on X.