In a significant improvement to bilateral economic relations, the United States has agreed to lower the reciprocal tariff it imposes on India from 50% to 18%. The development follows a phone call earlier in the day between Prime Minister Narendra Modi and US President Donald Trump.
After months of tariff-driven trade hostilities, the US President's declaration represents a major change in India-US trade policy. As part of its Liberation Day tariffs last year, Washington imposed a 25% import tax on Indian commodities and an additional 25% on New Delhi's imports of Russian oil, placing India among the nations with the highest tariffs.

Trump claimed to have spoken with PM Modi on "many things, including trade, and ending the war with Russia and Ukraine" in a social media message. He said that a commercial agreement between the two nations was the outcome of the talks.
The US president claims that PM Modi has decided to stop buying Russian oil in favor of increasing energy imports from the US and possibly Venezuela. Trump stated that this change could assist put an end to the continuing crisis in Ukraine.
PM Modi refers to it as a "Make in India" campaign.
Thanking Trump, Prime Minister Modi declared that the action would significantly advance the Make in India campaign.It's a pleasure to talk to my good buddy President Trump today. I'm happy that the 18% tariff on Made in India products will now be lowered. On behalf of India's 1.4 billion citizens, I would like to express my gratitude to President Trump for this fantastic statement," PM Modi stated.
"When two major economies and the biggest democracies in the world collaborate, it benefits our people and opens up enormous possibilities for mutually beneficial cooperation. I'm excited to collaborate closely with him to advance our collaboration to new heights," he remarked.
Trump says India will purchase Venezuelan crude oil.
This occurs one day after Trump declared that a deal was in place for New Delhi to buy crude oil from Venezuela rather than Iran.What Trump declared on Monday

First, US President Trump stated that Washington and New Delhi had reached a trade agreement.The entire statement is as follows: "This morning's conversation with Indian Prime Minister Modi was an honor. In addition to being one of my closest friends, he is a strong and well-respected national leader. Among the numerous topics we discussed were trade and putting an end to the conflict with Russia and Ukraine. He consented to stop purchasing Russian oil and to increase his purchases from the US and possibly Venezuela. This would help put an end to the ongoing conflict in Ukraine, which is killing thousands of people every week!

We agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, dropping it from 25% to 18%, as a gesture of friendship and respect for Prime Minister Modi and at his request, effective immediately. They will also proceed to eliminate all tariffs and non-tariff barriers against the United States. Along with more than $500 billion in U.S. energy, technology, agricultural, coal, and other goods, the prime minister also pledged to "BUY AMERICAN" at a far higher level. In the future, our wonderful connection with India will only get stronger.

It is impossible for most people to say that Prime Minister Modi and I get things done. I appreciate you taking the time to consider this. PRESIDENT DONALD J. TRUMP. The declaration follows reports from Sergio Gor, the recently appointed ambassador to India, that US President Trump had a conversation with Prime Minister Narendra Modi.