US President Donald Trump announced a major decision on tariffs imposed on India. He reduced the retaliatory tariffs on Indian goods from 25 per cent to 18 per cent. Trump shared this update on his social media platform, Truth Social, after holding a phone conversation with Prime Minister Narendra Modi. The move takes immediate effect and signals a positive shift in India–US trade relations.
During his post, Trump praised Prime Minister Modi and described him as a close friend. He called Modi one of the strongest leaders in India and said he values speaking with him. Trump also stated that Modi agreed to stop purchasing oil from Russia. Instead, India showed interest in buying more oil from the United States and Venezuela. He expressed hope that this step would help bring an end to the Ukraine crisis.
Moreover, Trump said the trade agreement received approval at Modi’s request. He added that the decision went beyond personal friendship and respect. According to Trump, the agreement strengthens economic ties and benefits both countries. He also confirmed that the tariff reduction would come into force immediately.
Soon after, Prime Minister Narendra Modi responded on the social media platform X. He said he was happy to announce that the US will now impose only an 18 per cent tariff on Indian goods. Modi thanked President Trump on behalf of 140 crore Indians. He also said Trump’s leadership plays a key role in promoting global peace, stability, and progress.
Furthermore, Modi stated that cooperation between the world’s largest democracies creates meaningful benefits for people. He added that the agreement opens doors to vast opportunities for both nations. Modi also said he looks forward to working closely with Trump to take India–US relations to new heights.
Meanwhile, the trade agreement impacted financial markets. Following the tariff cut, investor confidence rose in international markets. As a result, the Indian rupee strengthened by 48 paise against the US dollar. This marked the biggest rise in six weeks. Currently, the rupee trades at 90.94 against the dollar.
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