Trump Announces India–US Trade Deal, Tariffs To Be Cut From 25% To 18%

US President Donald Trump has announced that the United States and India have agreed on a trade deal that will reduce tariffs from 25 per cent to 18 per cent, marking a significant step forward in bilateral economic ties. The development comes amid heightened diplomatic engagement between New Delhi and Washington.

Trump spoke with Prime Minister Narendra Modi on Monday, a day before External Affairs Minister S Jaishankar begins an official visit to the United States. The conversation drew attention across diplomatic, political and business circles in both countries, given its timing and the progress in trade negotiations.

US Ambassador to India Sergio Gor confirmed the phone call in a brief social media post, stating that President Trump had spoken with Prime Minister Modi and adding ‘stay tuned’, without offering further details. Neither side released an official summary of the discussion.

Officials believe this was the first conversation between the two leaders this year. Since last summer, Trump and PM Modi have reportedly spoken around ten times, reflecting the steady momentum in India–US relations.

The call came as both countries moved closer to finalising a long-pending bilateral trade agreement. Negotiators have focused on market access, tariff structures and resilient supply chains. Officials familiar with the talks say discussions have reached their final stage, setting the backdrop for Trump’s announcement on tariff reductions.

Trump has repeatedly praised PM Modi’s leadership in recent months and, in November, expressed his intention to visit India this year. A presidential visit is expected to coincide with the upcoming QUAD summit, highlighting the strategic depth of the partnership.

President Trump–PM Modi Call Signals Breakthrough

The timing of Trump’s call and trade announcement underscores the growing convergence between India and the US on trade, strategic supply chains and geopolitics. Cooperation in critical minerals has emerged as a central pillar of bilateral ties, particularly in the context of clean energy, advanced manufacturing and national security.

India and the US have expanded collaboration across defence, technology and energy sectors in recent years.

The QUAD partnership, comprising India, the US, Japan and Australia, remains a key platform for Indo-Pacific coordination. Officials on both sides describe the India–US relationship as one of the most consequential geopolitical partnerships of the decade ahead.

Also Read: President Trump, Prime Minister Modi Hold Phone Talks Ahead Of Jaishankar US Visit