PM Modi's First Reaction To Trump's Announcement Of Indo-US Trade Deal

New Delhi: Following Donald Trump's announcement of a historic trade agreement between India and the United States, reducing tariffs on 'Made in India' products from 25% to 18%, Prime Minister Narendra Modi has thanked the US President. PM Modi expressed gratitude on behalf of the 1.4 billion people of India, saying that the agreement would unlock immense opportunities for mutually beneficial cooperation between the two nations. 

Prime Minister Modi's post on trade deal with the US came after Donald Trump announced the US-India trade agreement, paving the way for reduced tariffs on Indian goods exported to the US. Trump stated that the reciprocal tariff on Indian products would be lowered from 25% to 18%. The latest development is expected to boost India's exports to the US, particularly in sectors like textiles, pharmaceuticals, and engineering goods.

After Trump's announcement on the trade agreement, PM Modi, in a post on X, stated, "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. When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights."

Earlier, US President Trump announced the deal, in a post on Truth Social, saying, "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. 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! Out of friendship and respect for Prime Minister Modi and, as per his request, 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. The Prime Minister also committed to "BUY AMERICAN," at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!"

Before the announcement, US Ambassador to India, Sergio Gor, shared a cryptic post regarding the telephonic conversation between Trump and PM Modi, raising expectations with a “stay tuned” suspense. 

Union Home Minister Amit Shah also reacted to the development, calling the deal a big day for India-US relations. "A big day for India-US relations as the trade deal has been locked with a significantly reduced tariff of 18%, paving the way for stronger trade ties and mutual growth. I congratulate PM @narendramodi and President @realDonaldTrump for this historic deal, which will elevate our strategic partnership and greatly benefit both nations and their people. Business between India and US set to flourish further," he said in a X post. 

The trade deal is seen as a major breakthrough, given the prolonged negotiations between the two countries. Trump had previously imposed tariffs on Indian goods, citing national security concerns and trade imbalances. However, the recent agreement suggests a thaw in relations, with both sides working towards a more collaborative approach.

As part of the deal, India has agreed to reduce its tariffs and non-tariff barriers on US goods to zero. Additionally, India has committed to buying $500 billion worth of US energy, technology, agricultural, and coal products. Trump also claimed that India would stop buying Russian oil and instead purchase more from the US and Venezuela.

The agreement has been welcomed by both countries, with President Trump praising Prime Minister Modi's leadership and the possibility for increased cooperation.