The US and India have announced a framework for an interim trade agreement under which Washington will reduce tariffs on Indian goods to 18 per cent, while New Delhi will cut or eliminate duties on several US industrial and agricultural products
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The US and India on Saturday announced that they have reached a framework for an interim trade agreement, under which America will reduce tariffs on India to 18 per cent, according to a joint statement issued by the White House.
It said the framework reaffirms the countries' commitment to the broader US-India Bilateral Trade Agreement negotiations launched by President Donald J Trump and Prime Minister Narendra Modi on February 13, 2025. The framework will include additional market access commitments and support more resilient supply chains.
"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," the statement said.
Key terms of the agreement includes that India will eliminate or reduce tariffs on all US industrial goods and a wide range of US 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 will apply a reciprocal tariff rate of 18 per cent on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products and certain machinery.
Subject to the successful conclusion of the Interim Agreement, the US will remove the reciprocal tariff on a wide range of goods including generic pharmaceuticals, gems and diamonds, and aircraft parts, the statement said.
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