Trump’s trade dealmaking opens India’s market wider to US goods

Trump’s trade dealmaking opens India’s market wider to US goods

The United States says President Donald Trump’s trade negotiations are steadily opening India’s vast consumer and industrial market to American businesses through lower tariffs and clearer rules, according to US Trade Representative Jamieson Greer.

Speaking after a joint White House announcement on an Interim US–India Trade Agreement, Greer said Trump’s approach was unlocking new opportunities for American workers, farmers and exporters while deepening economic ties with India.

He described the framework as a “historic milestone” that signals a shared commitment to reciprocal, balanced and results-driven trade. The interim pact is intended to deliver early gains while keeping talks on track for a comprehensive US–India Bilateral Trade Agreement launched in February 2025 by Trump and Prime Minister Narendra Modi.

Under the framework, India has agreed to reduce or eliminate tariffs on all US industrial goods and a broad range of agricultural products, including tree nuts, fruits, soybean oil, animal feed, wine and spirits.

In return, Washington will impose a uniform 18 per cent reciprocal tariff on selected Indian exports such as textiles, leather goods, plastics, chemicals, home décor, artisanal products and certain machinery. Officials say this measure is aimed at addressing persistent US trade deficits.

If the interim deal is finalised, the US has signalled it will remove these reciprocal tariffs on key Indian sectors including generic pharmaceuticals, gems and diamonds, and aircraft components.

The agreement also provides India a preferential quota for automotive parts and commits the US to lifting certain national-security tariffs on Indian aircraft and parts.

Beyond tariffs, both sides agreed to tackle non-tariff barriers. India will streamline import rules for US medical devices and ICT products, review international standards within six months, and ease restrictions affecting American farm exports.

The framework also outlines cooperation on digital trade, supply chain security, investment screening and export controls. India has indicated plans to purchase up to $500 billion in US energy, aircraft, precious metals, technology products and coking coal over the next five years, including data-centre hardware.

Officials from both countries said they will move swiftly to implement the framework and work toward a full bilateral trade pact.

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