WASHINGTON: The United States and India announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, a step aimed at advancing talks toward a broader bilateral trade pact, as the White House formally announced to reduce the tariff on imports of Indian products from 25 per cent to 18 per cent.
According to a joint statement, the framework reaffirms both sides' commitment to negotiations on a US-India Bilateral Trade Agreement. Those talks were launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025. The interim deal is designed to deliver early results and support more resilient supply chains, officials said.
“The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes, ” the announcement said.
Earlier this week, Trump spoke with Prime Minister Narendra Modi and wrote on Truth Social that the two countries have agreed on a trade deal. He pointed to reciprocity, expanded market access, and efforts to address long-standing trade imbalances as core goals, while highlighting the broader strategic importance of economic ties with New Delhi.
Under the framework, India will eliminate or reduce tariffs on all US industrial goods and on a wide range of US food and agricultural products. These include dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and other products.