The United States and India will continue negotiations to resolve remaining issues, including services and investment, labour, and government procurement, the White House said.
In the coming weeks, both countries will work toward finalising an interim trade agreement, with the aim of concluding a mutually beneficial Bilateral Trade Agreement (BTA).
Days after India and the US announced a joint framework for an interim, reciprocal trade deal, the White House released a fact sheet titled “The United States and India Announce Historic Trade Deal (Interim Agreement).”
Key Terms of the Interim Trade Agreement
The fact sheet outlines the main terms of the agreement. It said India will eliminate or reduce tariffs on all US industrial goods and on a wide range of US food and agricultural products.
These products include dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruits, certain pulses, soybean oil, wine and spirits, and other items. India has also committed to buying more American goods, including over $500 billion worth of US energy, information and communication technology, agricultural products, coal, and other items.
A Path Toward Stronger Trade Ties
Under the section titled “A Prosperous Path Forward,” the fact sheet said US President Donald Trump continues to promote the interests of the American people by improving market access for US exporters and reducing tariff and non-tariff barriers to protect economic and national security.
The fact sheet noted that India has maintained some of the highest tariffs on US goods among major economies. Agricultural tariffs average around 37%, while certain automobiles face tariffs of more than 100%. It also said India has a history of using protectionist non-tariff barriers that have restricted many US exports.
“In the coming weeks, the United States and India will promptly implement this framework and work toward finalising the Interim Agreement, with a view to concluding a mutually beneficial BTA to secure benefits for American workers and businesses,” the statement said.
Ongoing Negotiations on Key Issues
The announcement provides what the White House called a “tangible path forward” in trade ties with India and reflects the President’s focus on balanced and reciprocal trade with a key partner.
In line with the roadmap set out for the BTA, the two countries will continue talks on remaining tariff and non-tariff barriers. These include technical barriers to trade, customs and trade facilitation, regulatory practices, trade remedies, services and investment, intellectual property, labour, the environment, government procurement, and unfair trade practices by state-owned enterprises.
The fact sheet added that India will address non-tariff barriers affecting bilateral trade in priority areas.
Digital Trade and Economic Security
The US and India will also negotiate rules of origin to ensure that the benefits of the agreement largely accrue to both countries.
India has agreed to remove its digital services taxes and to negotiate strong bilateral digital trade rules. These rules will address discriminatory or burdensome practices and aim to prevent customs duties on electronic transmissions.
Both sides also committed to closer economic security cooperation. This includes improving supply chain resilience, promoting innovation, addressing non-market practices by third parties, and working together on investment reviews and export controls. The two countries also plan to expand bilateral trade in technology products and strengthen joint technology cooperation.
Tariff Changes and Political Context
The fact sheet noted that last Friday, President Trump announced the trade deal, saying it would open India’s market of more than 1.4 billion people to US products.
The joint statement followed a phone call between Trump and Prime Minister Narendra Modi last week. During the call, the leaders agreed on a framework for the interim trade agreement and reaffirmed their commitment to broader BTA negotiations.
The White House also said Trump agreed to remove the additional 25% tariff on imports from India in recognition of India’s commitment to stop purchasing Russian oil. An executive order removing the extra tariff was signed last Friday.
“Given India’s willingness to align with the United States to address trade imbalances and shared national security challenges, the United States will lower the reciprocal tariff on India from 25% to 18%,” the statement said.
Also Read : Ceigall India Secures ₹1,700 Crore Solar and Battery Storage Project
