"Unlocks Immense Opportunities": PM's "Big Thanks" After Trump Tariff Cut

Prime Minister Narendra Modi today thanked US President Donald Trump - "on behalf of the 1.4 billion people of India" - for reducing tariffs on Indian goods from 25 per cent to 18 per cent.

"Delighted that Made in India products will now have a reduced tariff of 18 per cent," PM Modi said in a post on X, minutes after Trump announced the tariff cut on Truth Social.

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," the prime minister said.

"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," PM Modi said. "I look forward to working closely with him to take our partnership to unprecedented heights."

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...

— Narendra Modi (@narendramodi) February 2, 2026

In the announcement that first appeared on the Trump-owned social media platform Truth Social, the US president called the move a "trade deal".

Trump also called PM Modi "one of my greatest friends, and a powerful and respected leader of his country."

The US India Strategic Partnership Forum (USISPF) in a statement said the reduction of India's reciprocal tariff to 18 per cent marks an important and positive first step.

While the agreement's specifics are pending, the announcement signals strong political will on both sides to move toward a comprehensive US-India bilateral trade agreement that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors.

Here's a timeline of events since Trump imposed a 50 per cent tariff on Indian goods being shipped to the US:

2025

April 2: The US imposed a 26 per cent "reciprocal tariff" on several Indian imports under his global "liberation day" tariff actions.

April 10: Trump paused the tariffs for 90 days and maintained a 10 per cent duty on all US imports.

July 31: Trump announced a 25 per cent tariff on all Indian goods and said it would levy a penalty if India continued to buy Russian oil.

August 7: Trump boosted to 50 per cent tariffs on Indian goods being shipped to the US, citing India's continued purchase of Russian oil. The tariff on Indian goods was the highest among US trade partners.

2026

February 2: Trump announces tariffs reduced from 25 per cent to 18 per cent on Indian goods.