Trump Calls PM Modi, Announces Tariff Reductions on Indian Goods

U.S. President Donald Trump has made headlines by speaking directly with Prime Minister Narendra Modi and announcing a reduction in certain U.S. tariffs on Indian exports, in what both sides describe as a step toward easing long-standing trade tensions.

According to U.S. and Indian officials, the decision came after a telephonic call between Trump and Modi in which both leaders discussed mutual economic interests and the importance of strengthening the U.S.–India strategic partnership. Trump said in public remarks that he wants to “promote fair and expanded trade” and cited India’s role in global supply chains, while Modi welcomed the move as a “positive signal for bilateral commerce.”

Sharing this news PM Modi wrote in his X account that, "Wonderful to speak with my dear friend President Trump today. 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."

"When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation."

"President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights."

Business associations in both countries have welcomed the announcement, with trade bodies hoping it will spur increased two-way investment and job creation, particularly in sectors like information technology services and life sciences.

The development underscores the evolving nature of U.S.–India economic ties, where political outreach and personal diplomacy increasingly shape tariff and trade policy in a polarized global trading environment.