Last Updated on February 3, 2026 12:32 am by INDIAN AWAAZ
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Staff Reporter /New Delhi
Prime Minister Narendra Modi on Monday said that India–United States relations received a significant boost following his conversation with US President Donald Trump, announcing a reduction in tariffs on Made in India products to 18 per cent.
In a post on social media after the talks, Prime Minister Modi described the interaction as “wonderful” and thanked President Trump for the decision, calling it a major positive step for Indian exports. He said the tariff reduction would benefit 1.4 billion people of India and open new opportunities for trade and investment between the two countries.
The Prime Minister underlined that cooperation between two large economies and the world’s biggest democracies creates wide-ranging benefits for their citizens and strengthens global economic prospects. He said the move would unlock immense opportunities for mutually beneficial cooperation, particularly in manufacturing and trade.
Praising President Trump’s leadership, PM Modi said it plays an important role in promoting global peace, stability and prosperity. He added that India fully supports President Trump’s efforts aimed at maintaining peace on the global stage.
The tariff cut is expected to give a major push to Indian manufacturers by improving the competitiveness of Indian goods in the US market, especially at a time when global trade faces uncertainty and protectionist pressures.
Prime Minister Modi also expressed optimism about the future of bilateral ties, stating that he looks forward to working closely with President Trump to take the India–US partnership to “unprecedented heights.”
The development signals growing strategic and economic alignment between New Delhi and Washington, with trade, manufacturing and global stability emerging as key pillars of the expanding partnership.
The agreement came more than five months after Washington imposed 50 per cent tariffs on several Indian exports, including a 25 per cent punitive duty for India’s purchases of Russian oil.
Trump said New Delhi had agreed to stop buying Russian oil and buy much more from the US and, potentially, Venezuela, which would help end the war between Russia and Ukraine. He said India would “likewise” move forward to reduce its tariffs and non-tariff barriers against the US to “ZERO”.
“It was an honour to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends, a Powerful and Respected Leader of his Country…He agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela…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%,” the post said.
According to Trump, Modi has also committed to ‘buy American’ at a much higher level, in addition to over $500 billion of US energy, technology, agricultural, coal, and many other products.