U.S. President Donald Trump stated that the U.S. will reduce the “reciprocal tariff” on Indian products from 25% to 18%, with effect from now. He made this announcement via Truth Social following a call with Indian Prime Minister Narendra Modi regarding a new trade deal between their countries.
In his Truth Social post announcing the decision regarding India, Trump claimed that Modi has committed to stopping oil imports from Russia and will instead import oil from the U.S. “in large quantities” and possibly from Venezuela too. He further claimed that India has committed to reducing tariffs and other non-tariff measures faced by U.S. products to zero. Trump claimed that Modi has promised to increase U.S. energy imports, technology products, agricultural products, coal, and other products worth over $500 billion.
The Indian Prime Minister Narendra Modi welcomed this decision via X and stated that “Made in India” products would now attract an 18% tariff.
The Indian opposition party, the Congress, also responded to the situation, accusing the government of attempting to divert public attention and asking for further clarification on the concessions that Modi had made. The party’s senior member, Jairam Ramesh, posted on X that the move was intended to “create distracting headlines,” while Congress leader Rahul Gandhi wrote on X that Modi had “surrendered on tariffs.”
The change in the 18% tariff is the result of a series of trade penalties that the U.S. had levied against India in the first half of 2025. The Trump administration had first levied a 25% tariff against Indian goods and then an additional 25% penalty, based on the continued import of Russian oil, which caused the tariffs to reach 50% at some point. However, the current 18% tariff is a rollback from the country-specific tariff and the additional Russia-related penalty.
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