Additional Coverage:
- US, India reach interim trade deal lowering tariffs on both countries’ goods and agricultural products (foxbusiness.com)
U.S. and India Ink Interim Trade Deal, Lowering Tariffs and Opening Markets
The United States and India have announced an interim trade agreement aimed at significantly lowering tariffs and fostering greater economic cooperation between the two nations. A joint statement released Friday hailed the deal as a “historic milestone,” emphasizing a shared commitment to “reciprocal and balanced trade based on mutual interests and concrete outcomes.”
U.S. Trade Ambassador Jamieson Greer credited President Donald Trump’s “dealmaking” for the breakthrough.
Greer stated that the agreement “is unlocking one of the largest economies in the world for American workers and producers, lowering tariffs for all U.S. industrial goods and a wide array of agricultural products.” He further highlighted that this announcement “demonstrates the deepening ties between the United States and India as we create new opportunities for farmers and entrepreneurs in both countries.”
Greer also extended thanks to Indian Minister of Commerce and Industry Goyal for his leadership in achieving fair and balanced trade.
This development follows President Trump’s announcement on Monday that a trade deal had been reached during a phone call with Indian Prime Minister Narendra Modi.
Under the terms of the agreement, India has committed to “eliminate or reduce tariffs on all U.S. industrial goods” and various food and agricultural products, including animal feed, tree nuts, and fruit. In a reciprocal move, the U.S. will apply an 18% tariff rate on specific goods from India, such as “textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery.”
Upon the successful conclusion of this interim agreement, the U.S. will also remove reciprocal tariffs on other products, including generic pharmaceuticals, gems and diamonds, and aircraft parts, according to the joint statement. This interim deal also sees the former 50% tariff on Indian goods reduced, partly in exchange for India halting Russian oil purchases and lowering other trade barriers.
Furthermore, the agreement outlines India’s intention to purchase $500 billion worth of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.
A formal, comprehensive trade agreement between the United States and India is anticipated to be finalized in March.