Total Tariff On India To Be 18%: US Ambassador Sergio Gor to NDTV

US Ambassador to India Sergio Gor today congratulated both Prime Minister Narendra Modi and President Donald Trump after both leaders confirmed reciprocal tariffs have been reduced to 18 per cent.

This is one of the lowest tariffs the US has announced for competing export economies, which means India has gone from being charged a very high tariff to the opposite end.

The US tariff on other competing export economies are Indonesia (19 per cent), Vietnam (20 per cent), Bangladesh (20 per cent), and China (34 per cent).

Gor told NDTV that this tariff breakthrough is the result of a strong friendship between the two leaders that has developed over many years.

"It's a friendship that has endured and it's ultimately what got this deal done. I've often said that the relationship between the United States and India has limitless potential. And with this trade deal, now being behind us, it's an incredible thing. It unlocks the next chapter of the relationship between our two great countries," Gor said.

A key point the American ambassador confirmed to NDTV is the total tariff, which now stands at 18 per cent.

"The total tariff will be 18 per cent. And that will be finalised over the next few days. There's some items that need to be signed, but the total tariff will be at 18 per cent," Gor said.

While there are a few technical things that will be worked out over the next two-three days, Gor said the deal is official. "It's done," he added.

PM Modi, Trump On Tariffs Deal

Soon after the tariff cut announcement by Trump, PM Modi thanked him "on behalf of the 1.4 billion people of India".

"Delighted that Made in India products will now have a reduced tariff of 18 per cent," PM Modi said in a post on X.

"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.

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.

The US ambassador told NDTV that many companies from India want to buy American products, and the message when Trump became president was that America was open for business.

"You know, our countries are in a spot today that frankly, the last four years, we weren't there," Gor said. "And under President Trump's leadership, the United States has come back to the forefront. As you saw in the last day or two, Air India is buying more Boeings. There's a 10-year deal that got signed between the United States and India on defence," he added.

"So there are a lot of things that are in common. We are great partners and because of the president's leadership because of the prime minister's leadership, that is something that we aim to take to the next level. The next three years will define the relationship between our two nations," Gor said.