Trump Claims US–India Trade Agreement Reached, Tariffs Cut from 25% to 18%

Former US President Donald Trump has claimed that a breakthrough has been achieved in the long-discussed US–India trade agreement, announcing a reduction in reciprocal Tariffs on Indian goods from 25% to 18%. The announcement, made shortly after Trump said he spoke with Prime Minister Narendra Modi, signals what he described as a renewed warming of India–US trade relations.

According to Trump, the tariff reduction comes into effect immediately and reflects progress in negotiations that had long stalled due to disagreements—particularly New Delhi’s firm stance on keeping its agriculture sector closed to American access.

However, despite the headline cut, an additional 25% duty on certain Indian exports to the United States will continue to remain in force, indicating that the agreement is still partial and evolving.

Prime Minister Narendra Modi responded to Trump’s announcement on social media, stating that “Made in India” products would now face a lower tariff rate of 18% in the US market.

“Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi wrote in a post on X (formerly Twitter), welcoming the development.

Trump further revealed that the much-anticipated US–India trade deal—which has faced repeated delays—was finally moving forward after what he described as productive discussions with the Indian prime minister.

He claimed the decision to reduce reciprocal tariffs was taken personally following negotiations with PM Modi and framed the move as a gesture of goodwill.

“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%,” Trump said in a post on Truth Social.

In a further claim that has drawn international attention, Trump stated that Prime Minister Modi had agreed to shift India’s oil imports away from Russia and toward suppliers in the United States and Venezuela.

Trump celebrated the alleged move, linking it directly to the ongoing conflict in Eastern Europe. “This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” he wrote, praising Modi’s reported decision to stop purchasing Russian oil.

He also asserted that India would begin eliminating all tariffs and non-tariff barriers against the United States as part of the broader trade understanding.

Reflecting on the conversation, Trump described his interaction with the Indian leader in glowing terms. “It was an Honor to chat with Prime Minister Modi, of India, this morning. In addition to being one of my closest friends, he is a strong and well-respected national leader,” he wrote.

Trump added that the discussions covered multiple strategic areas, including bilateral trade and efforts aimed at ending the Russia–Ukraine war. He reiterated that Modi had agreed to halt Russian oil purchases and expand imports from the US, and potentially Venezuela.

“Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most,” Trump declared, also referencing Modi’s alleged commitment to purchase more than $500 billion worth of American energy, technology, coal, and other goods.

While official confirmation and detailed documentation of the agreement are still awaited, Trump’s claims have already sparked significant debate, with analysts closely watching how the proposed tariff reductions and energy commitments could reshape the future of US–India economic and strategic ties.