Trump added that India would likewise move forward to reduce tariffs and non-tariff barriers against the United States to “ZERO”.

Prime Minister Narendra Modi late on Monday night, after a telephonic conversation with US President Donald Trump, announced that ‘Made in India’ products will now face a reduced tariff of 18%.

The development marks a positive turn in the bilateral relationship and is expected to reduce the impact of earlier US tariffs on Indian exports.

External Affairs Minister Dr S. Jaishankar welcomed the announcements on bilateral trade, saying it will “create more jobs, spur growth and promote innovation in both economies”.

He added that the development will “strengthen ‘Make in India’ endeavors and encourage trusted technology ties. The opportunities in our economic engagement are truly vast and we are confident of realizing them.”

Commerce and Industry Minister Piyush Goyal, calling it a “landmark trade agreement”, said this agreement “unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world. It will help India get technology from the US.”

Meanwhile, Mr Trump, who made the announcement in a post on Truth Social before PM Modi did, said that the two leaders spoke about “many things, including Trade, and ending the War with Russia and Ukraine.”

Trump claimed that Prime Minister Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela”.

He added, “This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!”

Trump further claimed that “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%.”

Trump added that India would likewise move forward to reduce tariffs and non-tariff barriers against the United States to “ZERO”.

Further, Trump claimed that PM Modi also “committed to "BUY AMERICAN," at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products.”

“Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most,” Trump said.

Congress’s take on the US–India trade deal

The Congress party has strongly criticised the development, particularly the fact that the announcement came first from US President Donald Trump and only later from Prime Minister Narendra Modi. The party has also raised serious questions over the details mentioned by Trump.

Citing US Secretary of Agriculture Brooke Rollins’s claim that "American farmers’ products will now be sold in the Indian market," Congress alleged that the Modi government has entered into the deal "by ignoring the interests of Indian farmers," calling it "deeply alarming for India".

Congress leader Jairam Ramesh said that all announcements, including the halt of Operation Sindoor and "updates on India’s oil purchases from Russia and Venezuela from Washington", were made by Trump, adding that "Trump clearly seems to have some leverage over Prime Minister Modi."

“Surely this cannot be the father of all deals,” he added.

Jairam Ramesh, in a post on X earlier today, citing information provided by Trump, said, "It is abundantly clear that Prime Minister Modi has - like he did on May 10, 2025 - completely surrendered. He has most definitely appeased President Trump. India stands diminished by this unfortunate sequence of events.”

Ramesh has demanded a debate on the deal in Parliament as the Budget Session continues.

“The text of both the EU and US trade deals must be laid on the Table of both Houses and debated - especially since the US Secretary of Agriculture Brooke Rollins has issued a statement claiming that India has liberalised agricultural imports from the US,” Ramesh said.

(For more news apart from “India–US trade deal: US tariff on ‘Made in India’ products reduced to 18%, says PM Modi," stay tuned to Rozana Spokesman.)