India-US Trade Deal Announced: PM Modi thanks Trump as both leaders hail strategic agreement

India and the United States have formalized a long-anticipated trade deal following months of negotiations. Announced jointly by Prime Minister Narendra Modi and US President Donald Trump, the pact aims to lower tariffs and deepen economic cooperation between the world’s two largest democracies.

India and the United States have officially announced a landmark trade agreement after extensive discussions that began in early 2025. US President Donald Trump and Indian Prime Minister Narendra Modi jointly unveiled the deal, which is expected to reshape bilateral economic ties.

The announcement follows a period of heightened trade tensions, including a 50% tariff imposed by the Trump administration on Indian exports to the US — one of the steepest levies on Indian goods in recent years.

Before the formal declaration, President Trump and PM Modi spoke by phone, a conversation later referenced by the newly appointed US Ambassador to India, Sergio Gor. Posting on X (formerly Twitter), Ambassador Gor teased the announcement, writing, “President Trump just spoke with Prime Minister Modi. STAY TUNED…”

Key Reactions and Highlights

At around 23:06 (IST), PM Modi took to social media to express his gratitude, announcing that tariffs on “Made in India” products will be reduced to 18%. In his message, the Prime Minister thanked President Trump “on behalf of the 1.4 billion people of India” and emphasized the mutual benefits of closer cooperation between the two democratic nations.

President Trump also lauded his relationship with PM Modi, describing the Indian leader as “powerful and respected” and highlighting the personal rapport between the two. Trump said their partnership demonstrates how decisive leadership can deliver results.

Ambassador Sergio Gor further reinforced the positive tone, saying the US-India relationship has “LIMITLESS POTENTIAL” and acknowledging President Trump’s regard for PM Modi as “a great friend.”

Domestic Political Response

The trade deal announcement drew sharp commentary from India’s opposition. Congress leader Jairam Ramesh criticized the government’s communication approach, noting that details of the agreement appeared first via the US Embassy rather than Indian official channels. Labeling the interaction habitual, Ramesh said India often learns of its own government’s actions through foreign representatives, coining the term “Trump-nirbharta.”

In a separate post, Ramesh also suggested that PM Modi had conceded too much in the negotiations, arguing that the deal favored US interests and that Modi had “capitulated,” a claim that sparked robust political debate.

What This Means

Although full details of the trade deal have yet to be published, the announcement signals a significant development in India-US economic relations. Lower tariffs on Indian exports are expected to boost trade volumes, while greater cooperation could unlock new opportunities across sectors. Both governments have indicated this agreement reflects a shared commitment to strengthening strategic and commercial ties.

As the full agreement is released, analysts will be closely watching its impact on trade balances, market access for goods and services, and wider geopolitical cooperation between the two nations.