US Cuts Tariffs on Indian Goods to 18 Percent, Boost for Made in India

Finance Minister Welcomes Major Trade Breakthrough​

Finance Minister Nirmala Sitharaman on Tuesday welcomed the decision by the United States to reduce tariffs on Indian goods, calling it a significant boost for the Made in India initiative. She said Indian products will now face a reduced reciprocal tariff of 18 percent, improving their competitiveness in the American market.

In a social media post, the finance minister described the move as good news for Indian manufacturing and exports, stating that people in both countries stand to benefit from closer economic cooperation.

Modi Trump Talks Lead to Tariff Reduction​

The tariff cut follows a high level telephonic conversation between Prime Minister Narendra Modi and US President Donald Trump. The discussion resulted in a trade understanding aimed at easing market access and strengthening bilateral trade ties.

After the announcement, Prime Minister Modi said he was delighted that Made in India products would now face a lower tariff of 18 percent. He thanked President Trump for the decision and said cooperation between two of the world’s largest economies and democracies creates meaningful benefits for people and opens up vast opportunities for mutually beneficial growth.

India Commits to Lower Trade Barriers for US Goods​

As part of the reciprocal arrangement, India has committed to reducing trade and non trade barriers for American goods. The country will also significantly increase imports from the United States across key sectors such as energy, technology, agriculture, coal, and other products.

President Trump stated that India would move forward to reduce tariffs and non tariff barriers against the United States to zero. He also said that New Delhi has committed to purchasing American goods at a much higher level, including imports worth more than USD 500 billion in energy and other sectors.

Strengthening India US Economic Partnership​

The reduction in tariffs from 25 percent to 18 percent is being seen as a major step toward strengthening India US trade relations. The agreement signals deeper economic engagement between the two countries and reinforces India’s push to expand global market access for domestically manufactured products under the Made in India initiative.