India and US release framework for interim trade deal cutting Trump tariffs

India and US outline interim tariff framework tied to Russian oil shift

India and the United States released a framework for an interim trade agreement aimed at lowering tariffs on Indian goods, according to a joint statement made public on Friday. The announcement came after U.S. President Donald Trump said last week that he planned to reduce import tariffs on India, several months after imposing steep taxes to press New Delhi to cut its reliance on cheap Russian crude.

Under the framework, tariffs on goods from India would be lowered to 18% from 25% once Modi agreed to stop buying Russian oil, Trump had said. The two countries described the approach as “reciprocal and mutually beneficial” and said they would work toward a broader trade deal that would “include additional market access commitments and support more resilient supply chains,” while noting that additional negotiations would be required to formalize any agreement.

The framework also sets out an Indian response on the scope of tariffs. It says India would “eliminate or reduce tariffs” on all U.S. industrial goods and on a wide range of food and agricultural products, including categories that have long been politically sensitive in India.

In his earlier remarks, Trump said India would start to reduce import taxes on U.S. goods to zero and buy $500 billion worth of American products over five years. That proposal was part of a broader push for greater U.S. market access and zero tariffs on almost all American exports, according to the statement and reporting described in the framework release.

Trump also signed an executive order on Friday to revoke a separate 25% tariff on Indian goods that he had imposed last year. Modi thanked Trump on social media “for his personal commitment to robust ties,” saying the framework reflected growing “depth, trust and dynamism” and adding that it will “further deepen investment and technology partnerships” between the two countries.

India’s opposition parties criticized the framework, arguing that it favors Washington and could harm sensitive domestic sectors, including agriculture. The reporting described past Indian opposition to tariffs in sectors such as agriculture and dairy that employ a large share of the population.

India’s trade minister, Piyush Goyal, said the deal protects “sensitive agricultural and dairy products,” listing maize, wheat, rice, ethanol, tobacco, and some vegetables. Goyal also said the agreement would open a “$30 trillion market for Indian exporters,” linking the potential export increase to the U.S. annual GDP, and added that it could create hundreds of thousands of jobs.

In a separate social media statement, Goyal said tariffs would go down to zero on a wide range of Indian goods exported to the U.S., including generic pharmaceuticals, gems and diamonds, and aircraft parts. India and the United States did not say in the framework when the interim terms would be fully implemented, but the statement said more negotiations would be needed before any broader, finalized trade deal is in place.

The interim framework lands as India pursues other trade agreements. India recently concluded a free trade agreement with the European Union, described as potentially affecting as many as 2 billion people after nearly two decades of negotiations, and India also signed a comprehensive economic partnership agreement with Oman in December and reached talks for a free trade deal with New Zealand.