Delhi: India and the United States have taken a major step to reset their trade relationship after a direct phone conversation between Prime Minister Narendra Modi and US President Donald Trump on Monday. Following the talks, Washington announced a sharp reduction in reciprocal tariffs on Indian exports, signalling a new phase in bilateral economic ties.
Under the understanding reached between the two leaders, the US will bring down duties on Indian goods from 25 per cent to 18 per cent. President Trump described the move as an outcome of “friendship and mutual respect,” adding that both countries want faster and smoother trade flows.
Prime Minister Modi welcomed the announcement and said stronger cooperation between the world’s largest democracies would open new opportunities for businesses and citizens on both sides. He stressed that closer India–US engagement would also contribute to global stability and economic growth.
President Trump, in his remarks, said India has agreed to work towards removing both tariff and non-tariff barriers on American products. He also claimed that New Delhi has shown readiness to significantly increase imports from the US across key sectors such as energy, agriculture, technology and manufacturing.
According to Trump, the agreement includes a long-term commitment by India to purchase US goods worth around USD 500 billion. He further linked the deal to broader geopolitical goals, suggesting that changes in India’s energy sourcing could support global peace efforts.
The phone call between Modi and Trump took place amid strong political momentum in both countries. Ahead of the conversation, Trump shared a magazine cover featuring the two leaders, calling them “newsmakers” who drive big decisions.
