‘Wonderful to Speak With My Dear Friend’: PM Modi Welcomes US Tariff Reduction

Prime Minister Narendra Modi on Monday welcomed the United States' decision to cut tariffs on Indian goods and thanked US President Donald Trump for what he described as a major boost to bilateral ties. Modi's response came after Trump announced a new trade deal under which Washington will reduce the reciprocal tariff on Indian products from 25 per cent to 18 per cent with immediate effect.

In a post on social media, Modi said he had a "wonderful" conversation with Trump and expressed gratitude on behalf of the people of India. "Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," the Prime Minister wrote.

Modi said closer cooperation between the two countries would unlock new opportunities. "When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation," he said, signalling optimism about the future of India-US economic engagement.

The Prime Minister also praised Trump's global role, saying his leadership was important for peace and stability. "President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace," Modi said, adding that he looked forward to working closely with the US President to take the partnership to "unprecedented heights".

Trump, in his own statement earlier, described the phone call as friendly and honourable and framed the tariff reduction as part of a broader trade deal. He said the agreement also includes commitments by India to reduce tariff and non-tariff barriers on American goods and significantly increase purchases of US products across sectors such as energy, agriculture and technology.

The announcement marks a significant shift in India-US trade relations, easing tariff pressures that had placed India among the most heavily taxed US trade partners. With both leaders publicly endorsing closer economic and strategic cooperation, the deal signals a renewed push to deepen ties between New Delhi and Washington.