18% US tariff on ‘Made in India’ products

Indicating a positive turn in a bilateral relationship that had been under strain because of multiple issues, Prime Minister Narendra Modi announced that “Made in India” products will “now” attract a “reduced tariff of 18%” in the U.S., after a telephonic conversation with President Donald Trump on Monday.

The move is expected to significantly reduce the impact of the 50% penalty tariffs that Mr. Trump had imposed on India in August 2025.

India is finding newer markets, strengthening old trade routes to compensate

“Delighted that Made in India products will now have a reduced tariff of 18%,” said Mr. Modi, thanking Mr. Trump.
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” said Mr. Modi in his post on X.

Minutes earlier, Mr. Trump announced on the social media platform Truth Social that the U.S. and India had “agreed” to a trade deal.

“…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%,” said Mr. Trump. He further claimed, “…they will likewise move forward to reduce their Tariffs and Non-Tariff Barriers against the United States, to ZERO.”

Commerce and Industry Minister Piyush Goyal welcomed the developments.

The Ministry of External Affairs has yet to respond to several questions regarding the declaration and the details shared by Mr. Trump. The U.S. President had said in the Truth Social post that during his discussion, India agreeing “to stop buying Russian oil.” He also claimed that India will “buy much more from the United States and potentially, Venezuela”. Mr. Trump said that Mr. Modi had “committed” to increase purchase of U.S. products to $500 billion.