Modi–Trump Phone Call: India and the United States have reached a significant breakthrough in bilateral trade relations, agreeing to a trade deal that will reduce reciprocal tariffs between the two countries. The announcement was made by US President Donald Trump following a telephonic conversation with Prime Minister Narendra Modi.
The development signals a renewed push to stabilise and strengthen economic ties after weeks of diplomatic engagement between New Delhi and Washington.
Trump Announces Tariff Reduction, Calls Deal a Major Win
Speaking on Monday, President Trump confirmed that both nations have agreed to lower trade barriers. According to him, India will move ahead with plans to reduce tariffs and non-tariff barriers on several American goods, potentially bringing them down to zero in select categories.
On the US side, Trump said Washington would cut tariffs on Indian products from 25 per cent to 18 per cent.
“Prime Minister Modi and I get things done,” Trump remarked, describing the agreement as a result of direct leadership-level engagement.
India to Expand Market Access for US Products
Trump further claimed that India has committed to significantly increasing its purchases of American products under a broader “buy American” approach. He also stated that PM Modi agreed to halt oil purchases from Russia, a move that could have wider geopolitical implications.
While official details from the Indian government are awaited, sources indicate that the agreement aims to balance trade interests while protecting sensitive domestic sectors.
Modi Welcomes Progress, Highlights Benefits for Indian Exports
Prime Minister Narendra Modi welcomed the outcome of the talks, noting that Indian-made products would now face a reduced tariff of 18 per cent in the US market. The reduction is expected to benefit Indian exporters, particularly in manufacturing and value-added sectors.
The Prime Minister has consistently emphasised fair trade, supply chain resilience, and expanded market access for Indian goods as key priorities in India’s foreign economic policy.
Talks Coincide With Jaishankar’s US Visit
The phone conversation took place on the same day External Affairs Minister S Jaishankar began a three-day official visit to Washington. The timing has been seen as strategic, reflecting coordinated diplomatic efforts to move the stalled trade negotiations forward.
US Ambassador to India Sergio Gor confirmed the call earlier through a brief social media post, hinting at a major development.
“President Trump just spoke with Prime Minister Modi. Stay tuned,” he wrote.
US Envoy Welcomes Agreement, Sees Limitless Potential
Later reacting to the announcement, Ambassador Gor expressed optimism over the deal, saying he was thrilled by the progress and underlining the vast potential of India–US ties.
In recent weeks, both sides have worked to ease tensions and finalise the long-pending bilateral trade framework, which had faced hurdles over tariff disputes and market access issues.
A Step Towards Resetting India–US Economic Relations
The trade deal is being viewed as a crucial step towards resetting economic relations between the world’s largest democracy and its biggest economy. Analysts believe the agreement could pave the way for deeper cooperation in technology, defence manufacturing, and clean energy in the coming months.
However, experts caution that the real impact will depend on the fine print of the agreement and how quickly both sides implement the commitments made at the leadership level.