Prime Minister Narendra Modi announced on Monday that “Made in India” goods would now be subject to a lower tariff of 18% following US President Donald Trump’s announcement that a trade agreement had been achieved between the two countries.

On X, Prime Minister Modi wrote that it was “wonderful to speak with my dear friend President Trump today.”

“Happy to hear that the 18% tariff on ‘Made in India’ products will now be lowered.” The Prime Minister wrote on X: “The 1.4 billion Indians are very grateful to President Trump for this fantastic statement.

“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. The peace, stability, and prosperity of the world depend on President Trump’s leadership. PM Modi added, “India fully supports his efforts for peace.”

He stated that he is eager to collaborate closely with Trump in order to “take our partnership to unprecedented heights.”

In a previous post on Truth Social, the US president claimed that the deal will instantly lower the reciprocal tariff between the United States and India from 25% to 18%.

He described it as a significant change in bilateral commercial relations that is connected to energy cooperation and more general geopolitical objectives.

The two leaders talked about “many things, including Trade, and ending the War with Russia and Ukraine,” according to Trump.

According to him, Modi consented to raise purchases from the US and possibly Venezuela and to cease purchasing Russian oil.

“This will help put an end to the ongoing conflict in Ukraine, where thousands of people are dying every week!” Trump penned.

Trump said the trade agreement would go into force right away. “We will proceed to lower our tariffs and non-tariff barriers against the United States to zero,” he declared.

Additionally, Trump said that Modi made a much stronger commitment to “BUY AMERICAN.”

“Over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products” will be bought by India, he continued.

The tariff reset, according to analysts, may also aid in reducing wider geopolitical trade concerns, especially now that India has finalized a separate free trade agreement with the EU.

However, finalization of sector-specific promises and implementation specifics is still pending.