US-India Trade Deal: Tariffs Slashed, Key Details Emerge

Key Details of the US-India Trade Agreement Unveiled

The Trump administration has reached a trade agreement with India, set to significantly alter tariff structures between the two nations. U.S. Trade Representative Jamieson Greer announced that while the deal is being formalized, the specifics have been agreed upon, focusing on industrial goods, agriculture, and technical trade barriers.

Overview of Tariff Adjustments and Trade Balance

Under the new agreement, India will reduce its tariffs on American industrial goods to zero from 13.5%. In return, the U.S. will lower its tariff on most Indian goods to 18% from 50%. This adjustment comes as India’s trade surplus with the U.S. grew to $53.5 billion in the first 11 months of 2025, up from $45.8 billion for all of 2024. The deal also includes India's commitment to recognize U.S. standards, removing technical barriers to trade.

Impact on Key Sectors

While the deal eliminates Indian tariffs on certain U.S. agricultural products like tree nuts, wine, and spirits, India will maintain import protections for other sensitive areas. The agreement also addresses energy, with India agreeing to reduce Russian crude oil imports and diversify its energy sources toward the U.S. and Venezuela. A specific start date for the tariff changes has not yet been announced.

Summary and Next Steps

The agreement marks a significant step in U.S.-India trade relations, promising to open markets for American goods. The next phase involves finalizing the official documentation. Markets will be watching for the formal implementation date and the detailed list of protected agricultural goods.

FAQ

Q: What are the main tariff changes in the US-India deal?
A: India will cut tariffs on US industrial goods to 0% from 13.5%, while the US will reduce tariffs on most Indian goods to 18% from 50%.

Q: Does the deal cover all agricultural products?
A: No, while tariffs on items like tree nuts and wine will be eliminated, India will maintain protections for certain sensitive agricultural sectors.

Source: Investing.com