The United States will charge a “reduced reciprocal tariff, lowering it from 25 per cent to 18 percent” on goods from India and Delhi on its part will “will likewise move forward to reduce” its tariffs and non-tariff barriers against the US “to zero:, US President Donald Trump announced on his Truth Social platform on Monday night.

Minutes later, Prime Minister Narendra Modi also posted on his social media that Indian goods to the US would now face a reduced tariff of 18 per cent.

Both leaders complimented each other in their posts.

“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country,” Trump posted on Truth Social.

“We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!”

He added: “Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO.

“The Prime Minister also committed to "BUY AMERICAN," at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!”

In his post, Modi wrote: “Wonderful to speak with my dear friend President Trump today. 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.

“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he wrote.

The prime minister returned the compliment to Trump.

“President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights.”

The US is India’s largest export partner and Trump’s tariffs – 25 per cent plus 25 per cent as purported penalty for Russian oil – have cast a long shadow over the future of export-oriented sectors in India.