India-US trade deal: What Trump discussed with PM Modi before making announcement

India-US trade deal: President Donald Trump on Monday spoke to Prime Minister Narendra Modi and announced that the United States and India agreed to a trade deal. Trump added that Washington will lower reciprocal tariffs from 25% to 18%.

Prime Minister Narendra Modi also confirmed a call with Trump and thanked him for reducing the tariff.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%,” said PM Modi.

What did Trump say about PM Modi?

In a post on Truth Social, Trump said, "It was an honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country."

Trump added that "Prime Minister Modi and he are two people that GET THINGS DONE, something that cannot be said for most."

The President also added that the US relationship with India will be even stronger going forward.

What did Trump discuss with PM Modi?

"We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week," the US President added in a post.

Trump on India-US trade deal

Out of friendship and respect for Prime Minister Modi and, as per his request, Trump added, “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.”

PM Modi praises Trump

“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,” PM Modi said.

PM Modi said that cooperation between two major economies and the world’s largest democracies delivers benefits for their citizens and creates significant opportunities for mutually beneficial collaboration. He also praised Trump’s leadership, calling it essential to global peace, stability, and prosperity, and said India fully supports his efforts to promote peace.

“I look forward to working closely with him to take our partnership to unprecedented heights,” PM Modi mentioned.

Meanwhile, Trump stated that PM Modi also pledged to purchase more than $500 billion worth of US energy, technology, agricultural, and other goods. Trump also mentioned New Delhi agreed to halt purchases of Russian oil and instead increase its energy imports from the United States, and possibly Venezuela.

Timeline: Key developments

The US introduced a 25% “reciprocal tariff” on several Indian imports as part of Trump’s global “Liberation Day” tariff initiative.

April 10, 2025 — Trump announced a 90-day pause on the new tariffs while keeping a baseline 10% duty on all US imports.

July 31, 2025 — Trump declared a 25% tariff on all Indian goods and warned of additional penalties if India continued purchasing Russian oil.

August 7, 2025 — Trump raised tariffs on Indian goods shipped to the US to 50%, citing India’s ongoing purchases of Russian oil. This marked the highest tariff imposed on any US trade partner.