PM Modi Thanks Trump for Cutting US Tariffs on Indian Goods from 25% to 18%

New Delhi: Prime Minister Narendra Modi has expressed gratitude to US President Donald Trump for reducing tariffs on Indian exports to the United States from 25 per cent to 18 per cent, calling it a "wonderful announcement" that will benefit the 1.4 billion people of India.

In a social media post shortly after Trump made the announcement on his platform Truth Social, PM Modi wrote, "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."

The Prime Minister further said that strong ties between the two nations were important, adding, "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."

"I look forward to working closely with him to take our partnership to unprecedented heights", PM Modi added.

Trump, describing the tariff cut as a "trade deal", went on to refer to PM Modi as "one of his greatest friends" and a powerful and respected leader of his country.

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.

When two large economies and the…

— Narendra Modi (@narendramodi) February 2, 2026

The US-India Strategic Partnership Forum (USISPF) welcomed the move as "an important and positive first step" toward a comprehensive bilateral trade agreement. The forum added that while details of the arrangement are still being finalised, the announcement reflects strong political commitment from both sides to address tariffs, market access, non-tariff barriers, and other trade issues across multiple sectors.

The tariff reduction marks a significant de-escalation in trade tensions that began in 2025. Here is a brief timeline of key developments:

- April 2, 2025 : The US imposed a 26 per cent "reciprocal tariff" on several Indian imports as part of President Trump's broader "Liberation Day" tariff actions.
- April 10, 2025 : Trump paused the tariffs for 90 days and set a uniform 10 per cent duty on all US imports.
- July 31, 2025 : Trump announced a 25 per cent tariff on all Indian goods, warning of further penalties if India continued purchasing Russian oil.
- August 7, 2025 : The US raised tariffs on Indian goods to 50 per cent—the highest among America's trade partners—citing India's ongoing imports of Russian oil.
- February 2, 2026 : President Trump announced the reduction of tariffs on Indian goods from 25 per cent to 18 per cent.

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