The US has agreed to withdraw an 18% reciprocal tariff on many Indian goods only after an interim trade agreement is finalised, the joint India‑US statement said Saturday.
Until that interim deal is concluded, the US will continue applying the reciprocal tariff to Indian exports including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal items, and certain machinery.
If the interim agreement is completed, tariffs are proposed to be removed on items such as generic pharmaceuticals, gems and diamonds, and aircraft parts.
The interim framework was announced as part of negotiations toward a broader India‑US Bilateral Trade Agreement (BTA), launched by US President Donald Trump and Prime Minister Narendra Modi in February 2025.
Under the proposed framework, India has agreed to eliminate or cut tariffs on all US industrial goods and a wide range of agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fruits, soybean oil, wine, and spirits.
At the same time, India will fully protect sensitive agricultural and dairy items — such as wheat, rice, maize, soy, poultry, milk, cheese, certain vegetables, and meat — to safeguard farmers’ incomes and rural livelihoods.
The joint statement also provides for Section 232 exemptions for certain aircraft and parts, preferential tariff‑rate quotas for automotive parts, and negotiated outcomes for generic pharmaceuticals, subject to regulatory and national security reviews.
Both sides agreed to tackle non‑tariff barriers, establish rules of origin to ensure benefits primarily flow to the two countries, and pursue expanded market access through continued BTA talks.
Officials said the interim framework aims to balance market access commitments with domestic sensitivities while negotiations continue on a comprehensive agreement.
