No duty concessions on sensitive grains, fruits, dairy: Highlights from India-US trade deal

NEW DELHI: India and the United States on Saturday announced the framework for an interim trade agreement that will sharply cut US tariffs on Indian goods while easing duties on several American food and agricultural products entering India. The agreement marks a de-escalation of months of trade tensions and sets the stage for a broader bilateral trade pact.

Under the framework, tariffs on Indian goods exported to the United States will be reduced from 50% to 18%. At the same time, India will eliminate or reduce tariffs on a range of US industrial goods and agricultural products, a move that could make several American imports cheaper for Indian consumers.




“The US and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade,” the joint statement said.

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The interim deal follows prolonged negotiations after Washington imposed steep tariffs on Indian imports, including a 25% duty introduced in August. The US had alleged that India was indirectly supporting Russia’s war efforts against Ukraine through oil purchases, a charge New Delhi has consistently rejected.

The framework also reaffirms the commitment of both countries to continue negotiations on a comprehensive US–India Bilateral Trade Agreement. These talks were launched by Prime Minister Narendra Modi and US President Donald Trump in February 2025 after months of friction over trade and energy ties.

As part of the interim agreement, India will reduce or eliminate tariffs on several 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.

The United States, in turn, will apply a reciprocal tariff rate of 18% on a wide range of Indian-origin goods, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products and certain machinery. Subject to the successful conclusion of the interim agreement, Washington has also said it will remove tariffs on additional Indian exports such as generic pharmaceuticals, gems and diamonds, and aircraft parts.

Also read: India-US trade deal: Read full text of joint statement

The White House said the framework would represent a historic milestone in the India–US partnership and help strengthen resilient supply chains, investment flows and technology cooperation.

The agreement also outlines India’s intent to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years, significantly expanding bilateral trade.

Both sides have committed to addressing non-tariff barriers affecting trade, including in medical devices, information and communication technology goods, and food and agricultural products. India has agreed to review standards and licensing procedures within six months to improve market access for US exports.

Also read: India-US trade deal: What it means for farmers, entrepreneurs and the ‘Make in India’ push


Officials said the framework would be implemented promptly, with negotiations continuing towards a full bilateral trade agreement aimed at further tariff reductions and expanded market access.

Key highlights of the India–US interim trade deal

• Tariffs on Indian goods: US duties on Indian exports cut from 50% to 18%, covering textiles, apparel, leather and footwear, plastic and rubber goods, organic chemicals, home décor, artisanal products and select machinery.
• Future tariff removals: Subject to the final agreement, the US will remove tariffs on generic pharmaceuticals, gems and diamonds, and aircraft parts.
• Tariffs on US goods: India to eliminate or reduce tariffs on US industrial goods and food and agricultural products such as dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.
• Cheaper US imports for India: Reduced duties could lower prices of select US food and agricultural products in the Indian market.
• Agriculture safeguards: Sensitive Indian farm and dairy products remain protected, according to government assurances.
• $500 billion purchase plan: India plans to buy $500 billion worth of US energy, aircraft, technology products, precious metals and coking coal over five years.
• Preferential market access: Both sides to grant each other preferential access in key sectors, including automotive parts and pharmaceuticals.
• Digital and technology trade: Commitment to boost trade in GPUs, data centre goods and expand joint technology cooperation.
• Non-tariff barriers: India to address long-standing barriers affecting US medical devices, ICT goods and agricultural exports.
• Path to full trade pact: Interim agreement lays groundwork for concluding a comprehensive India–US Bilateral Trade Agreement.