India, US unveil interim trade deal framework

India and the US on Saturday announced that they have reached a framework for an interim trade agreement under which tariffs on New Delhi will be reduced to 18%.

- Press Trust of India

As per the agreement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of American food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

“The US and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade,” a joint statement issued by both the countries said.

It added that the framework reaffirms the countries’ commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

As per the key terms of the agreement, the US will reduce the import duty on Indian goods to 18%.

In August last year, the US imposed a 25% reciprocal tariff and an additional 25% levy on India over its purchase of Russian oil. Indian exporters were hit hard by the 50% tariffs, as America is their largest export destination.