'Made in India' products will now have reduced tariff of 18 pc in US: PM Modi

In a significant development, Prime Minister Narendra Modi on Monday said that ‘Made in India’ products will now have a reduced tariff of 18 per cent, as US President Donald Trump said India and the United States had reached a trade deal. 

PM Modi posted on X that it was “wonderful to speak with my dear friend President Trump today”.

“Delighted that ‘Made in India’ products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Prime Minister posted on X.

“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,” PM Modi further stated.

He said he looks forward to working closely with Trump to “take our partnership to unprecedented heights”

Earlier, In a post on Truth Social, US President said the agreement would immediately reduce the U.S. reciprocal tariff on Indian goods from 25 per cent to 18 per cent, calling it a major shift in bilateral trade ties linked to energy cooperation and broader geopolitical goals.

Trump said the two leaders discussed “many things, including Trade, and ending the War with Russia and Ukraine.” He claimed that Modi agreed to stop buying Russian oil and to increase purchases from the United States and, potentially, from 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 wrote.

According to Trump, the trade deal would take effect immediately. He said India would “move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO.”

Trump also said Modi committed to “BUY AMERICAN” at a much higher level. He added that India would purchase “over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products.”

Picture Courtesy: IANS