‘Tariff king’ to trade partner

On February 2 at around 10 PM, Sergio Gor, who had become US ambassador to India just three weeks ago, posted a cryptic message on his official handle on X, stating, “President Trump just spoke with Prime Minister Modi. STAY TUNED....” This created a buzz across media in India as the two leaders are known for their nationalistic stand. They appear to have retained per- sonal chemistry they share, even though there was a moment when Trump mocked Modi and called India as “tariff king” and its econ- omy as a dead economy.

However, the veil over what transpired between them during their tele- phonic talks was lifted by the Indian PM himself at around 10.20 PM the same day, when he wrote on his social media handle: “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India prod- ucts 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.

”This major climb- down on tariff, from 50% to 18%, caught India’s diplomatic circle off guard. The US says it has rescinded 25% reciprocal as well as punitive 25% tariffs on India. It was never anticipated from Trump in view of his regular outpouring of anti- India diatribes and undertaking those measures which hurt New Delhi’s interests. For instance, besides imposing steep high tariffs on Indian imports, he threatened slapping penalties on US com- panies that manufacture in India.

He tightened visa rules around the H-1B visa programme and hosted Pakistan army chief General Asim Munir in the White House for a lunch a few days after India- Pakistan conflict in May 2025.Yet the truth is: Trump’s announce- ment came days after India and the European Union signed the Free Trade Agreement, which is called “the mother of all deals”. “It will significantly enhance bilateral trade and investment ties, drive shared prosperity, strengthen resil- ient and diversified supply chains, and support sustainable and inclusive growth,” said the India- EU joint statement issued after the 16th India-EU summit on January 27. 

Why India handles Trump’s announce- ment cautiously Trump, who feels he can compel compliance through disruption, said he took the decision to reduce tariffs on India after New Delhi agreed to stop purchasing Russian oil, and “buy much more from the United States and, potentially, Venezuela.” He also said that India has agreed to purchase $500 billion worth of US energy, agriculture, coal and other products under the trade deal.

Yet the fact on the ground is something else; com- merce minister Piyush Goyal said India-US trade deal has not been finalized, instead, it is in the final stage of detailing between the negotiating teams of the two sides. He also said that agriculture and dairy are sectors under protec- tion. In the midst of cacophony over the trade deal, the ministry of external affairs has not issued any comment regarding Trump’s announcement, except for repost- ing the message of the PM about his telephonic conversation with the US president.