'Good news for Made in India products': Nirmala Sitharaman as US cuts tariffs on Indian goods to 18%

Union Finance Minister Nirmala Sitharaman on Tuesday welcomed the Trump administration’s decision to lower tariffs on Indian goods, calling it a significant boost for the government’s ‘Made in India’ initiative. She said Indian products exported to the US will now face a reduced reciprocal tariff of 18 per cent.

Taking to the social media platform X, Sitharaman said the development would benefit both countries.

“Good news for #MadeInIndia products. They will now face reduced tariff of 18%. Thanking the leadership of PM @narendramodi and @POTUS for this development. People of our two large democracies stand to benefit,” she said.

The announcement follows a high-level telephonic conversation between Prime Minister Narendra Modi and Donald Trump, which paved the way for the revised tariff structure.

Previously, PM Modi welcomed the move, describing it as a positive outcome for Indian exports. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” he said in a post on X.

Modi added that closer cooperation between the two countries would unlock new opportunities. “When two large economies and the world’s largest democracies work together, it benefits the people and unlocks immense opportunities for mutually beneficial cooperation,” he said. The prime minister also expressed support for Trump’s leadership, saying it was vital for global peace, stability and prosperity.

From the US side, President Trump said the tariff reduction was part of a broader trade understanding between the two nations. “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 per cent to 18%,” Trump said on social media.

Trump added that India had committed to reducing both tariff and non-tariff barriers on American goods. He said New Delhi would move towards cutting these barriers to zero and would significantly step up imports from the US, including energy, technology, agriculture, coal and other products.

According to Trump, India has also committed to purchasing American goods worth more than $500 billion, marking a substantial expansion of bilateral trade between the two countries.

The agreement is being seen as a major step forward in India-US trade relations, with both sides emphasising economic cooperation, market access and long-term strategic partnership.