Modi–Trump call delivers tariff truce and deeper trade push

Prime Minister Narendra Modi and US President Donald Trump announced a reciprocal easing of trade barriers after a phone conversation on Sunday, signalling a renewed push to deepen India–US economic ties.

Modi said the United States would reduce tariffs on Made in India products to 18%, calling the move a boost for bilateral cooperation between the world’s two largest democracies. He described the engagement as constructive and said closer economic collaboration would unlock new opportunities for both countries.

Trump, in a parallel statement, said Washington and New Delhi had agreed to lower reciprocal tariffs from 25% to 18%, while India would move towards eliminating tariffs and non-tariff barriers on US goods. He added that India had committed to sharply higher purchases of US energy, technology and agricultural products, exceeding $500 billion over time, and to reducing dependence on Russian oil.

Both leaders framed the agreement as strengthening a strategic partnership that they said would expand further in the months ahead.