India-US Announce Interim Trade Framework: Tariffs to Drop to 18% on Indian Exports

India and the United States announced a framework for an interim trade agreement aimed at reducing U.S. tariffs on Indian goods to 18% from 25%, following Trump’s plan to lower import tariffs on India to support phasing out reliance on Russian crude. The agreement includes reciprocal reductions in tariffs on industrial goods, food, and agricultural products, with India eliminating or reducing tariffs on U.S. goods, including toward zero on $500 billion in goods. Trump signed an executive order to revoke the 25% tariff. India’s Trade Minister Piyush Goyal said sensitive agricultural and dairy products will be protected, and the deal is expected to boost Indian exports and create hundreds of thousands of jobs. India also agreed to reduce tariffs on a wide range of exports, including generics, gems, and aircraft parts.