New Delhi, February 7 (ANI): The United States and India announced a framework for an Interim Agreement on reciprocal and mutually beneficial trade, marking a major step toward advancing the broader US-India Bilateral Trade Agreement (BTA) negotiations launched by President Donald J. Trump and Prime Minister Narendra Modi in February 2025, a joint White House and Commerce Ministry statement said.
The Interim Agreement will represent a historic milestone in the partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes, the statement said.
In a separate announcement, the White House confirmed it was eliminating the additional tariffs imposed on India for purchases of Russian oil and said India had agreed to stop importing Russian oil. “India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defense cooperation over the next 10 years,” the White House said.
The White House further specified tariff action: “Effective with respect to goods entered for consumption, or withdrawn from the warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 7, 2026, products of India imported into the United States shall no longer be subject to the additional ad valorem rate of duty of 25 percent imposed pursuant to Executive Order 14329. Accordingly, effective 12:01 a.m. eastern standard time on February 7, 2026, headings 9903.01.84 through 9903.01.89 and subdivision (z) of U.S. Note 2 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States are hereby terminated. To the extent that implementation of this order requires a refund of duties collected, refunds shall be processed pursuant to applicable law and the standard procedures of U.S. Customs and Border Protection for such refunds.”
The Kremlin responded by noting India is free to buy oil from wherever it chooses. Kremlin spokesperson Dmitry Peskov said Russia is not India’s only supplier of oil and petroleum products, adding that India has historically purchased such products from other countries and that there is “nothing new here.”
Under the trade framework, India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among others.
The United States will apply a reciprocal tariff of 18 percent on Indian-origin goods under the relevant executive order, covering sectors such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home decor, artisanal products, and certain machinery. “Subject to the successful conclusion of the Interim Agreement, the US will remove reciprocal tariffs on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts,” the statement said.
The framework also provides for removal of U.S. tariffs on certain Indian aircraft and aircraft parts imposed under national security-related proclamations on aluminum, steel and copper. India will receive a preferential tariff rate quota for automotive parts, consistent with U.S. national security requirements. Depending on the outcome of a U.S. Section 232 investigation, India is also set to receive negotiated outcomes for generic pharmaceuticals and pharmaceutical ingredients.
Both countries committed to providing each other preferential market access in sectors of mutual interest on a sustained basis and to establishing rules of origin to ensure agreement benefits primarily accrue to the United States and India.
Both sides said they would promptly implement the framework and work toward finalising the Interim Agreement, with a view to concluding a comprehensive and mutually beneficial Bilateral Trade Agreement in line with the agreed roadmap. (ANI)
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