In a move signaling strengthened ties between the United States and India, the US has agreed to reduce tariffs on Indian goods from 25% to 18%. The announcement followed a conversation between US President Donald Trump and Indian Prime Minister Narendra Modi.

According to a statement made by President Trump, this tariff reduction is part of a broader trade deal where India will reduce its tariffs and non-tariff barriers on American products to zero. Furthermore, India has committed to significantly increase its purchase of American goods, aiming for over $500 billion in U.S. energy, technology, agriculture, and coal.

US Ambassador to India, Sergio Gor, confirmed the tariff reduction to 18%. Gor has expressed his enthusiasm about the developing trade relationship between the two countries, stating that the US-India relationship has "limitless potential". He also noted that President Trump considers Prime Minister Modi to be a close friend.

President Trump communicated the details of the agreement on his Truth Social platform, stating the tariff reduction was made "out of friendship and respect" for Prime Minister Modi and at his request. In addition to trade matters, discussions between the two leaders also included the ongoing war between Russia and Ukraine. Trump stated that Modi agreed to cease the purchase of Russian oil, with intentions to increase imports from the United States and potentially Venezuela, a move intended to help end the war in Ukraine.

Prime Minister Modi responded positively to the announcement, acknowledging the reduced tariff for "Made in India" products. He thanked President Trump for the decision and emphasized the mutual benefits of cooperation between the world's largest democracies.

This announcement comes after rising tensions between the two nations, particularly after the U.S. imposed tariffs on India for its continued purchase of Russian crude oil. A 25% tariff on certain Indian exports remains in force.