Trump Praises PM Modi: “We Are Two Leaders Who Get Things Done,” Tariff Cut from 25% to 18%

In a major development, the United States and India have concluded a trade deal following an unexpected announcement on Monday night. After a direct conversation between U.S. President Donald Trump and Prime Minister Narendra Modi, the U.S. reduced tariffs on Indian goods from 25% to 18% (previously as high as 50%).

India-U.S. Trade Deal and Key Conditions
President Trump, in his social media post, outlined certain conditions attached to the trade deal. The discussions between the two leaders focused on boosting trade and addressing the Russia-Ukraine conflict. India agreed to halt Russian oil imports, increase oil purchases from Venezuela, and make significant commitments under the “Buy American” initiative covering over $500 billion in U.S. energy, technology, agriculture, coal, and other sectors.

Trump Praises Modi’s Leadership
Trump lauded PM Modi, saying, “He and I, we are two leaders who get things done. That cannot be said for most people.” He also described Modi as a friend, expressing that it was an honor to speak with him and highlighting the potential for stronger India-U.S. relations in the future.

PM Modi Welcomes the Tariff Reduction
Responding via social media, PM Modi tweeted:
“It was a pleasure to speak with my dear friend President Trump today. I am delighted that tariffs on ‘Made in India’ products will now be reduced to 18%. On behalf of India’s 1.4 billion people, I sincerely thank President Trump for this wonderful announcement.”

Strategic and Economic Implications
This announcement comes shortly after India signed a Free Trade Agreement (FTA) with the European Union, following the 77th Republic Day celebrations on January 26, 2026, attended by European Council President Antonio Costa and European Commission President Ursula von der Leyen. The EU deal is seen as a strategic and economic milestone, opening the European market of 27 countries to Indian goods.

Meanwhile, the U.S. had delayed finalizing its trade deal with India over the past two months. Trump had repeatedly issued aggressive statements about Russian oil and tried to cultivate closer ties with Pakistan’s Prime Minister Shahbaz Sharif. However, these actions had little impact on India, which simultaneously negotiated FTAs with the EU, New Zealand, and the United Kingdom. These moves not only mitigated the effect of U.S. tariffs but also reinforced India’s growing strategic and economic influence in Asia, putting pressure on the U.S. to finalize the deal.