Prime Minister Narendra Modi on Monday thanked US President Donald Trump after Washington reduced tariffs on Indian goods from 25% to 18%, calling the move a major boost for bilateral economic ties.

In a post on X shortly after President Trump’s announcement on Truth Social, PM Modi expressed gratitude “on behalf of the 1.4 billion people of India,” saying he was delighted that “Made in India products will now have a reduced tariff of 18 per cent.”

“Wonderful to speak with my dear friend President Trump today,” the Prime Minister wrote. “Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”

Modi said cooperation between the two countries would generate major gains. “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he said.

He also described Trump’s leadership as important for “global peace, stability, and prosperity,” adding that India supports efforts aimed at peace and looks forward to taking the partnership to “unprecedented heights.”

President Trump, in his post, described the move as part of a “trade deal” and referred to PM Modi as “one of my greatest friends” and a respected leader.

The US–India Strategic Partnership Forum (USISPF) welcomed the decision, calling the tariff reduction a positive first step toward a broader bilateral trade agreement.

While detailed terms are yet to be released, the development signals political willingness on both sides to advance negotiations covering tariffs, market access, non-tariff barriers, and sectoral trade issues.

Background to the Tariff Shift

The reduction follows a turbulent period in trade relations:

2025

April 2: US imposed a 26% “reciprocal tariff” on several Indian imports.

April 10: Tariffs paused for 90 days, with a 10% baseline duty maintained.

July 31: Trump announced a 25% tariff on Indian goods, warning of penalties over India’s Russian oil purchases.

August 7: Tariffs raised to 50% on Indian exports — the highest among US trade partners — citing continued oil imports from Russia.

2026

February 2: US reduces tariffs on Indian goods to 18%.

The latest move is expected to ease trade tensions and revive momentum toward a comprehensive US–India trade framework.