India-US trade gets fillip as Trump cuts tariff on Indian goods to 18%

 New Delhi: India’s trade relationship with the United States received a significant push after President Donald Trump announced a reduction in tariffs on Indian products to 18%, a move welcomed by Prime Minister Narendra Modi as a step that would unlock fresh economic opportunities for both countries.

In a telephonic conversation on Sunday, Modi thanked Trump on behalf of “1.4 billion people of India” for the decision, underlining that closer cooperation between the world’s two largest democracies would benefit businesses and consumers on both sides. The Prime Minister said the alignment of two large economies could create “immense opportunities for mutually beneficial cooperation,” according to a statement issued by the Press Information Bureau.Modi also publicly acknowledged the move in a post on X, saying he was “delighted” that Made in India products would now face a lower tariff barrier in the US market. He described Trump’s leadership as vital for “global peace, stability, and prosperity,” and said India fully supports US efforts for peace.The tariff cut is expected to improve price competitiveness of Indian exports ranging from manufactured goods to select consumer products, at a time when global trade remains under pressure from geopolitical uncertainties and slowing demand in key markets.While the government did not quantify the immediate impact, trade analysts said the move could provide near-term relief to exporters and help revive momentum in bilateral trade flows.Officials indicated that the conversation also reflected a broader intent to deepen the strategic partnership, with Modi saying he looked forward to working closely with Trump to take ties to “unprecedented heights.” The latest announcement comes amid ongoing efforts by both sides to rebalance trade and reduce friction points through targeted market-access measures.For Indian exporters, the 18% tariff ceiling marks a tangible easing of access to the world’s largest consumer market, potentially improving order books and margins in the coming quarters, even as companies continue to navigate currency volatility and global demand swings.