The United States and India moved closer to a trade deal on Friday, releasing an interim framework that would cut tariffs, redefine energy relations and deepen economic cooperation, as the two countries seek to revamp global supply chains. This framework reaffirms the commitment to negotiate a broader bilateral trade agreement, the two governments said in a joint statement, while stressing that additional negotiations were needed to finalize the agreement.
Furthermore, US President Donald Trump removed, by decree, the additional 25% customs duties imposed on Indian products for purchases of Russian oil, with New Delhi having “committed to stop importing directly or indirectly” Russian oil, transferring its oil purchases to the United States and Venezuela. However, US officials will monitor the situation and recommend reinstating tariffs if India resumes oil purchases from Russia, the order said, as Washington continues to pressure India to limit its energy relations with Moscow.
The India-US joint statement does not mention India’s purchases of Russian oil or India’s official commitment to confirm the move.
On Monday, Donald Trump announced an agreement with India to reduce US tariffs on Indian products from 50% to 18% in exchange for stopping purchases of Russian oil by India and reducing trade barriers. Half of the 50% rate had been separately imposed by Donald Trump to punish India for buying Russian oil, which he said was fueling Moscow’s war effort in Ukraine.
New Delhi, however, is resisting pressure from Washington to widely open its agricultural market. India’s Commerce Minister Piyush Goyal said in a social media post that the agreement protects the interests of farmers and the livelihoods of rural people by “fully protecting sensitive agricultural and dairy products.”
India’s opposition Congress party, however, said the trade deal was made largely on U.S. terms and hurt farmers and traders, calling it a pact that undermined national interests.
New details on pricing conditions
The joint statement released Friday provides additional details compared to the initial outline of the trade agreement revealed Monday by Donald Trump. It confirms that India will purchase $500 billion worth of US products over a five-year period, including oil, gas, coking coal, aircraft and aircraft parts, precious metals and technology products. The latter category includes graphics processors, typically used for artificial intelligence applications, and other products used in data centers.
It states that India will eliminate or reduce tariffs on all U.S. industrial products and on a wide range of U.S. food and agricultural products, including dried distillers grains and red sorghum for animal feed, nuts, fresh and processed fruits, soybean oil, wine and spirits.
The United States maintains a customs duty of 18%
But the deal will apply a tariff rate of 18% on most imports from India to the United States, including textiles and clothing, leather and footwear, plastic and rubber, organic chemicals, home decor, handicrafts and some machinery.
India will benefit from the same tariff relief as other allied countries that have signed trade agreements with the United States on certain aircraft and aircraft parts, and will receive a quota for imports of auto parts which will be subject to a lower tariff rate, the statement said.
Depending on the results of the Trump administration’s tariff investigation on pharmaceutical products and their ingredients, “India will benefit from the negotiated results with respect to generic drugs and their ingredients,” the statement said.
Piyush Goyal hailed the framework agreement as opening up a market worth $30 trillion – the annual GDP of the United States – to Indian exporters, especially farmers, fishermen and micro and small and medium enterprises.
New Delhi protects its agriculture
India also agreed to address long-standing non-tariff barriers on imports of agricultural products, medical devices and communications equipment, with negotiations expected to reach an agreement within six months to accept U.S. or international safety and certification standards for product imports.
The United States has affirmed its intention to consider India’s requests to reduce tariffs on Indian products during the upcoming negotiations of the bilateral trade agreement. The two sides also agreed to cooperate on export controls of sensitive technologies and to take measures to combat “third-party non-commercial policies”, referring to China.
The United States and India have worked for years to reach a comprehensive trade deal, but disputes remain in agriculture, digital trade, medical devices and market access. However, according to officials from both countries, strategic concerns, including competition with China, diversification of supply chains and energy security, have given new urgency to the negotiations.
date: 2026-02-07 22:14:00
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