Washington/New Delhi (Rajeev Sharma): The United States has announced that India will eliminate tariffs on a wide range of American industrial and agricultural products under the trade agreement unveiled by President Donald Trump, describing it as a significant gain for US exporters while noting that some sensitive sectors in India will remain protected.
United States Trade Representative Jamieson Greer said the agreement would substantially open India’s market to US goods and called it a major victory for the American economy. Speaking to CNBC on Tuesday, Greer said the paperwork for the deal was being finalised, but the core terms had already been agreed upon by both sides.
Greer stated that while the US will continue to impose an 18 percent tariff on Indian goods to address its trade deficit, India has committed to reducing tariffs on a vast range of American products, including farm produce, manufactured items, chemicals and medical equipment. He said India’s current average tariff on industrial goods is about 13.5 percent, which will be brought down to zero for nearly all such products.
Clarifying the scale of the cuts, Greer said around 98 to 99 percent of industrial goods would see tariffs eliminated. He added that a broad segment of agricultural products would also benefit from zero-duty access. Items such as tree nuts, wine, spirits, fruits and vegetables are among those expected to gain from the agreement.
However, the US trade official noted that India would continue to safeguard certain sensitive sectors, similar to how the US and other countries protect strategic areas. He said further discussions would continue to improve access in those segments over time.
Greer also pointed to progress in addressing non-tariff barriers, stating that both countries had reached an understanding on technical standards. According to him, agreements on recognising specific US standards would make it easier for American products to enter India’s market of more than one billion consumers.
In a separate post on X, the Office of the US Trade Representative said India’s decision to lower tariffs to zero on a wide array of American goods would provide unprecedented access for US farmers and producers.
Addressing India’s energy ties with Russia, Greer said New Delhi had benefited from discounted Russian oil following Western sanctions on Moscow but claimed that India began reducing such imports towards the end of last year. He added that India was diversifying its energy sourcing, including oil, gas and propane, with increased purchases from the US and other countries.
Earlier, President Trump announced that the US would reduce its reciprocal tariff on Indian goods from 25 percent to 18 percent, while India would move to eliminate both tariff and non-tariff barriers on American products. Trump also said Prime Minister Narendra Modi had committed to boosting imports from the US, including energy, technology, agricultural goods and coal.
US Secretary of Agriculture Brooke Rollins welcomed the deal, saying it would expand access for American farm products to India’s growing market, support better prices for farmers and bring additional income to rural communities. She noted that the US agricultural trade deficit with India stood at $1.3 billion in 2024 and said the agreement would help narrow that gap.
