Trump Lowers India Tariffs to 18% as PM Modi Halts Russian Oil Purchases

In a landmark move, India and the United States have agreed to a trade deal that will cut tariffs on Indian goods to 18%, down from 50%. The announcement came after a 30-minute phone call between US President Donald Trump and Prime Minister Narendra Modi.

US Ambassador to India, Sergio Gor, confirmed the tariff reduction, which now puts India below countries like China (34%), Pakistan (19%), Bangladesh (20%), and Canada (35%) in trade duties.

Trump broke the news on Truth Social, saying, "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."

Modi echoed the sentiment on X: "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."

He added, "When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation." Modi also praised Trump’s leadership as vital for global peace, stability, and prosperity.

"I look forward to working closely with him to take our partnership to unprecedented heights," the post read.


The deal follows India’s recent “mother of all deals” with the European Union. During the call, Trump and Modi discussed trade and the Ukraine war. Trump revealed that India agreed to stop buying Russian crude oil saying, "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!"

Trump also detailed the trade deal: "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%."

He added, "They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. 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."

Trump emphasized the strong personal rapport with Modi: "Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most."

Experts credited Sergio Gor for fast-tracking the agreement. Following the announcement, Gor said, "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."


Indian Ambassador to the US, Vinay Mohan Kwatra, called it "A big win for a consequential partnership," highlighting vast new opportunities for both economies.

"Today’s announcements herald an exciting new phase in our partnership," he added.

Union Industries Minister Piyush Goyal said, "This agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world. It will help India get technology from the US."

He emphasized that this is "not just a trade deal,” saying, "it is a historic turning point that will reshape India–U.S. relations and accelerate our journey towards Viksit Bharat 2047.”

Markets responded immediately: GIFT Nifty soared over 800 points, or 3.2%, reflecting improved trade competitiveness and stronger bilateral economic alignment.

The announcement coincided with External Affairs Minister S Jaishankar’s visit to Washington for a ministerial meeting on critical minerals, signaling a strategic alignment alongside the trade breakthrough.