US, India Agree on Trade Framework
As an initial step following the breakthrough, Trump reversed a 25% secondary tariff he had recently placed on Indian imports over New Delhi’s purchase of Russian oil. The move marked his first concrete action to advance the new arrangement.
The rollback came alongside a joint statement from the two countries indicating that the framework “reaffirms the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiation.”
According to the statement, continued discussions “will include additional market access commitments and support more resilient supply chains.”
Officials from both sides described the interim understanding as a major turning point, saying:
"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,"
Under the outlined terms, India agreed to reduce or fully remove tariffs on US industrial exports as well as a “wide range” of American agricultural goods. In return, the United States said it would lower its reciprocal tariff—separate from the Russian oil-related measure—to 18% and eliminate duties on Indian aircraft and related components.
The framework also calls for both countries to grant each other preferential market access in “sectors of respective interest on a sustained basis.” Separately, India committed to “address long-standing barriers to the trade in U.S. medical devices.”
Commenting on the agreement, the US trade representative praised the outcome, stating: “President Trump’s dealmaking 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.”
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