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