White House unveils India-U.S. interim trade pact with tariff cuts
White House unveils India-U.S. interim trade pact with tariff cuts
India will slash tariffs on U.S. goods while Washington trims duties on Indian imports under a new interim framework, with a formal signing expected mid-March.
A joint statement from Washington lays out an interim framework for India-U.S. trade. India will eliminate or reduce tariffs on all industrial goods and a wide range of U.S. 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 items. In return, the U.S. will lower its tariffs on Indian imports to 18% from 50% by amending the relevant executive order.
Implementation will be staged, with India able to reduce or remove its tariffs on U.S. goods after the formal Interim Agreement is signed, which is expected to happen in mid-March. The statement includes a clause allowing both sides to modify commitments if the other country changes tariffs.
Prime Minister Narendra Modi welcomed the framework, saying it reflects the growing depth, trust and dynamism of the partnership and will strengthen Make in India by opening opportunities for farmers, entrepreneurs, MSMEs, startups, and fishermen, generating large-scale employment for women and youngsters.
Notably, the joint statement did not mention India’s imports of Russian oil. Officials describe the framework as a stepping stone toward deeper economic cooperation, with mid-March signings anticipated as a crucial milestone.
