US India Trade Framework: Interim Deal Lowers Tariffs Before March Pact
The US India trade framework marks a new step in economic ties. Both countries released an interim plan on Friday. The move aims to cut tariffs and improve cooperation.
Officials said the framework will guide talks toward a larger agreement. However, more negotiations are still required. Leaders hope to sign the final deal in March.
Tariff Cuts And Energy Shifts
President Donald Trump confirmed the new plan earlier this week. The United States will cut tariffs on Indian goods to 18%. Previously, the rate stood at 50%. Half of that tariff had punished India for buying Russian oil. However, the US removed the extra 25% after India agreed to shift purchases. As a result, India will now buy more oil from the US and Venezuela.
Major Purchase Commitments
India plans to buy $500 billion in US goods over five years. These purchases include oil, gas, aircraft, and technology products. In addition, the deal covers metals and data center equipment.
India also agreed to reduce tariffs on US industrial goods. For example, cuts will apply to farm products, nuts, fruits, and soybean oil. Wine and spirits are also included.
Tariffs To Stay on Some Imports
Despite the changes, an 18% tariff will remain on most Indian imports. These include textiles, leather goods, chemicals, and machinery. However, some aircraft parts will get lower tariff rates. India may also gain better terms on generic medicines. That outcome depends on a US review of pharmaceutical imports. Therefore, more talks are expected in the coming months.
Standards And Future Talks
India agreed to address non-tariff barriers on several imports. These include farm goods, medical devices, and communication equipment. Both sides will work on safety and licensing rules within six months. The US also promised to consider lower tariffs on Indian exports later. In addition, both countries plan to cooperate on export controls. Officials say the talks reflect shared concerns about supply chains and global competition.
