'Will 'Made in India' Products Enjoy 18% Tariff Reduction in the US?' - PM Modi
Synopsis
Discover how Prime Minister Modi's latest announcement about 'Made in India' products could reshape trade relations. The reduction of tariffs to 18% signifies a major milestone in U.S.-India trade agreements, with potential benefits for both nations.
Key Takeaways
Reduction of tariffs for 'Made in India' products to 18% .
Significant shift in U.S.-India trade relations .
Potential increase in cooperation regarding energy and other sectors.
PM Modi expresses gratitude towards President Trump for the announcement.
Commitment from India to buy American products.
In a major announcement, Prime Minister Narendra Modi revealed on Monday that products labeled as 'Made in India' will benefit from a reduced tariff of 18 percent. This comes as US President Donald Trump stated that a trade agreement has been reached between India and the United States.
PM Modi shared his thoughts on X, expressing his happiness at having spoken to his 'dear friend President Trump'.
He stated, “Thrilled that 'Made in India' products will now see a reduced tariff of 18 percent. A heartfelt thank you to President Trump on behalf of 1.4 billion people of India for this fantastic announcement.”
Modi emphasized that when two significant economies and the world's largest democracies collaborate, it results in benefits for their citizens and opens up vast prospects for cooperation. He praised Trump’s leadership as crucial for global peace, stability, and prosperity. Modi expressed his anticipation to work closely with Trump to elevate their partnership.
Earlier, on Truth Social, President Trump indicated that the agreement would lead to an immediate reduction of the U.S. reciprocal tariff on Indian goods from 25 percent to 18 percent, marking a significant shift in bilateral trade relations related to energy cooperation and broader geopolitical aims.
Trump revealed that the two leaders discussed a variety of topics, including trade and the conflict between Russia and Ukraine. He noted that Modi agreed to reduce purchases of Russian oil and increase imports from the United States and possibly from Venezuela.
He stated, “This will assist in ENDING THE WAR in Ukraine, which is currently claiming thousands of lives weekly!”
According to Trump, the trade agreement would take effect immediately, with India planning to eliminate its tariffs and non-tariff barriers against the U.S., aiming for ZERO tariffs.
Trump also mentioned that Modi committed to a much higher level of BUY AMERICAN products, adding that India is set to purchase over $500 BILLION in U.S. energy, technology, agricultural, coal, and various other products.
Point of View
It's crucial to emphasize the importance of this trade agreement. The reduction in tariffs not only fosters a stronger partnership between India and the U.S. but also symbolizes a step forward in global cooperation. It is essential for both nations to navigate these changes responsibly, ensuring mutual benefits while maintaining economic stability.
NationPress
9 May 2026
Frequently Asked Questions
What is the new tariff rate for 'Made in India' products?
The new tariff rate for 'Made in India' products has been reduced to 18%.
Who announced the reduction in tariffs?
The reduction in tariffs was announced by Prime Minister Narendra Modi.
What was the previous tariff rate before the reduction?
The previous tariff rate was 25% before the reduction to 18%.
What is the significance of this trade deal?
This trade deal signifies a major shift in U.S.-India relations, promoting economic collaboration and potentially benefiting both economies.
How does this deal affect U.S.-India energy cooperation?
The deal is expected to enhance energy cooperation between the U.S. and India by increasing Indian purchases of U.S. energy products.
