Trump announces trade deal with India, Modi 'delighted'

In a much-awaited breakthrough that promises to end months of acrimony in India-US relations, US President Donald Trump has announced a trade deal with India, reducing reciprocal tariff from 25% to 18%, providing a breather to US-bound Indian exports.

Trump’s comments came after his telephonic conversation with Prime Minister Narendra Modi on February 2.

PM Modi promptly welcomed the new trading arrangement with US and thanked President Trump “on behalf of the 1.4 billion people of India for this wonderful announcement.” “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%,” PM Modi said 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.”

According to President Trump, PM Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.”

“This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week,” President Trump announced on Truth Social.

Under the deal, according to Trump, India will move forward to reduce their Tariffs and Non-Tariff Barriers against the United States, to zero. “The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products,” said President Trump.

“Our amazing relationship with India will be even stronger going forward,” he said.

The India-EU trade deal, which was unveiled only a week ago, acted as a trigger for Trump to end months of vacillation and announce the big deal that will pave the way for resetting India-US relations.

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Manish Chand: Manish Chand is Founder and Editor-in-Chief of India Writes Network (www.indiawrites.org) and India and World, a pioneering magazine focused on international affairs. He is CEO, Centre for Global India Insights, an India-based think tank focused on global affairs.