PM Narendra Modi Announces Reduced 18% US Tariff on Made in India Products

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India–US Trade Ties Get a Major Boost

Prime Minister Narendra Modi has announced a significant breakthrough for Indian exports, stating that Made in India products will now face a reduced US tariff of 18 per cent. The announcement was made through a social media post following his conversation with United States President Donald Trump, highlighting a positive step forward in India–US trade relations.

The tariff reduction is part of a broader understanding between the two countries aimed at enhancing bilateral trade and strengthening economic cooperation between the world’s two largest democracies.

Modi–Trump Conversation Sets the Tone



Prime Minister Modi described his interaction with President Trump as “wonderful,” referring to the US President as his “dear friend.” He emphasised that when two large economies collaborate, it creates opportunities that benefit people on both sides.

The Prime Minister noted that cooperation between India and the United States unlocks immense potential for mutually beneficial growth, reinforcing the strategic partnership that has steadily expanded over the years across trade, defence, technology, and innovation.

US Confirms Reciprocal Tariff Reduction

US President Donald Trump also took to social media to confirm the agreement, stating that the United States’ “amazing relationship with India” will become even stronger in the coming years.

According to President Trump, both nations agreed to a Trade Deal featuring a reduced Reciprocal Tariff, bringing it down from 25 per cent to 18 per cent on Made in India products. He described the agreement as a win-win arrangement that reflects the growing trust and understanding between Washington and New Delhi.

Strong Personal Rapport Between Leaders

President Trump praised Prime Minister Modi as “one of his greatest friends” and a powerful and respected leader of India. He further highlighted their working relationship, saying that both leaders are “people who get things done,” underlining the decisive leadership that helped drive the agreement forward.

This strong personal rapport has often played a key role in advancing India–US cooperation, helping overcome trade barriers and policy differences through direct engagement at the highest level.

What the Tariff Cut Means for India

The reduction of US tariffs to 18 per cent is expected to boost Indian exports, making Made in India products more competitive in the American market. Sectors such as manufacturing, textiles, engineering goods, pharmaceuticals, and processed foods could particularly benefit from lower duties.

For Indian businesses, the move may translate into improved market access, higher export volumes, and stronger global positioning, aligning with the government’s long-term vision of promoting domestic manufacturing and export-led growth.

Strengthening the Strategic Partnership

The trade deal reflects the broader strategic alignment between India and the United States, which has steadily deepened in recent years. Beyond trade, the partnership spans defence cooperation, critical technologies, clean energy, and supply chain resilience.

By lowering tariffs and easing trade frictions, both countries signal their intent to build a more balanced and forward-looking economic relationship, capable of supporting growth amid global uncertainties.

Looking Ahead

The announcement marks a positive milestone in India–US relations and reinforces confidence in the Made in India initiative on the global stage. As implementation details unfold, industry stakeholders will closely watch how the tariff reduction translates into real-world gains for exporters and consumers alike.

With political will and strategic alignment at the top, India and the United States appear poised to take their economic partnership to the next level.


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