US President Donald Trump on Monday announced a trade deal with India, agreeing to lower his government's reciprocal tariff from 25 per cent to 18 per cent, and claimed major concessions from New Delhi.
Prime Minister Narendra Modi, in his response, confirmed the tariff cut but little else.
A US embassy spokesperson said the 25 per cent additional tariff imposed on India by the US for buying Russian oil would be dropped in view of a commitment from India to stop importing oil from Russia. "I can confirm the final tariff will be 18 per cent," the spokesperson said.
Trump’s unilateral announcement on Truth Social, made after a phone call with Modi, stated that the US would lower its reciprocal tariff from 25 per cent to 18 per cent. He further claimed India had agreed to reduce its tariffs and non-tariff barriers against the US “to ZERO” and committed to “BUY AMERICAN” at much higher levels, including over $500 billion in US energy, technology, agriculture, coal and other products.
Nearly an hour later, Modi confirmed only that the US had agreed to an 18 per cent reduced tariff on “Made in India products". Notably absent from his statement: any mention of zero tariffs and non-tariff barriers, the $500-billion purchase commitment, or agreements to buy American products.
“Wonderful to speak with my dear friend President Trump today,” Modi posted. “Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
Trump’s post claimed Modi had agreed to stop buying Russian oil and purchase significantly more from the US and “potentially Venezuela". However, the President made no mention of the additional 25 per cent tariff the US had imposed on India last August 27 for Russian oil purchases.
Bloomberg sources confirmed that India had made a $500-billion purchase commitment over five years for US goods, including technology products like data centres, aircraft, precious metals, cooking coal and energy.
Trump said the deal would be “effective immediately” and had been agreed “out of friendship and respect for Prime Minister Modi and, as per his request".
The announcement followed a now-familiar pattern. US ambassador to India Sergio Gor first announced the Trump-Modi call on X with the message “STAY TUNED". India maintained radio silence for over an hour before Modi’s post appeared.
The Congress seized on this communication dynamic. “It seems that Prime Minister Modi and President Trump spoke to each other today. This information has been provided not by the Indian side but by the US ambassador to India,” said party general secretary Jairam Ramesh.
“This now seems to be the routine — India gets to know of its government’s actions only from President Trump or his appointees. Trump-nirbharta.”
This marks at least the fourth instance of Trump announcing Indian policy decisions before New Delhi: He previously revealed the Operation Sindoor ceasefire on May 10 before either India or Pakistan, announced India’s decision to reduce Russian oil purchases last year, and claimed on Saturday that India had signed a deal to buy Venezuelan oil.
Sanjay Budhia, managing director of Patton India, which has substantial US business interests, offered measured support: “India and the United States are long-term strategic partners, anchored in strong B2B collaboration and deep people-to-people ties. A well-structured trade agreement, supported by a calibrated reduction of tariffs, will open new vistas for enhanced and sustainable growth.”
The striking discrepancies between the two leaders’ accounts raise questions about the actual terms agreed upon. Did India commit to zero tariffs? Is there truly a $500-billion purchase agreement? Will India stop buying Russian oil entirely?
The hour-long delay in Modi’s response and his selective confirmation of Trump’s claims suggest possible diplomatic sensitivities around the full scope of commitments — or disagreement about what was actually agreed on during their conversation.