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Trump announces India-US trade deal; tariffs reduced to 18 %

CM Desk by CM Desk
April 23, 2026
in Top News, World
Reading Time: 3 mins read
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‘Studying new opportunities…’: India on Trump’s reciprocal tariffs
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Trump earlier today shared posts on Truth Social in connection to India and PM Modi.

US President Donald Trump on Monday announced a trade deal between India and the United States. Under the agreement, the US will lower tariffs on India from 25 per cent to 18 per cent.

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In return, India has agreed to stop buying Russian oil, and will purchase $500 billion worth of US energy and tech, Trump said.

New Delhi has not yet made any remarks on the trade deal agreement and PM Modi’s phone call with the US President.

In a post on Truth Social, Trump said that India had “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela”, and would also move to reduce tariffs and non tariff barriers against the US to zero. Trump said that this would “help end the war in Ukraine”

This came after US Ambassador to India Sergio Gor took to social media platform X, informing that US President Donald Trump has spoken to Prime Minister Narendra Modi.

“President Trump just spoke with Prime Minister Modi. STAY TUNED…” Gor said in the post.

Regarding the conversation, Trump said that it was “an honour” to speak to PM Modi, calling him one of his “greatest friends”. He further said that both leaders “are two people that get things done.”

“He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine,” the US President said in a post on Truth Social.

“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO,” the US President said.

“The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products,” Trump further added.

Gor’s remark came an hour after Trump shared posts on Truth Social in connection to India and PM Modi. The US President posted a photo of the India Gate. “India’s beautiful Triumphal Arch. Ours will be the greatest of them all!”

In another, Trump shared a picture of both PM Modi and him on a magazine cover, which had called them “newsmakers of the year 2025.”

This comes even as External Affairs Minister S Jaishankar began a three-day visit to the US. The external affairs minister is in the US to attend the ministerial meeting on critical minerals supply chain.

India-US ties had taken a downturn after the US President imposed 50 per cent tariffs on India last year, including an additional 25 per cent on account of its purchase of Russian oil.

In addition to this, other issues including the US President’s claim of ending the India-Pakistan conflict, which has been strongly denied by New Delhi, also deteriorated relations.

Tags: IndiaModiTrumpUS trade deal
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