Indian Prime Minister Narendra Modi thanked President Donald Trump "on behalf of 1.4 billion people of India" after announcing a trade deal Monday that commits India to eliminating all tariffs on American goods while the US merely reduces its levies from 25% to 18%.
"Big thanks to President Trump for this wonderful announcement," Modi wrote on X, praising American leadership as "vital for global peace, stability, and prosperity."
Trump, posting on Truth Social, said the tariff cut came "out of friendship and respect for Prime Minister Modi and, as per his request."
What India Gives
Under the agreement, India will reduce all tariffs and non-tariff barriers against the United States "to ZERO."
New Delhi also committed to purchasing over $500 billion in American energy, technology, agricultural products, and coal, while adopting a "Buy American" policy.
Most significantly, Modi reportedly agreed to stop purchasing Russian oil entirely, a key US demand and instead buy from the United States and potentially Venezuela.
What The US Gives
The United States will lower its reciprocal tariff on Indian goods from 25% to 18%, a 7% point reduction that still leaves substantial duties on Indian exports.
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Timing And Context
The deal follows India's free trade agreement with the European Union last week, which US Treasury Secretary Scott Bessent had criticized.
Trade talks between Washington and New Delhi had stalled for months over India's Russian oil purchases.
Trump declared that he and Modi "are two people that GET THINGS DONE." Modi said he looked forward to taking the partnership "to unprecedented heights."
The Indian government had not officially confirmed all deal terms at publication.