India, US agree on new trade framework
India and the US just agreed on a new trade framework after a call between President Trump and PM Modi.
India will lower or drop tariffs on all US industrial goods and a wide range of US farm goods, making it easier for American products to enter India.
What does it mean for both sides?
In return, the US will cut tariffs on Indian goods from 25% to 18%, remove tariffs on certain aircraft and aircraft parts and lift Section 232 tariffs on steel, aluminum and copper as they apply to aircraft and aircraft parts,
and offer expanded access for Indian auto parts and potential access for generic pharmaceuticals contingent on the successful conclusion of the Interim Agreement and, in some cases, the outcome of a US Section 232 investigation.
Plus, India has promised to buy $500 billion worth of US products over five years—including energy, tech gear, and data center stuff.
Both sides are also making moves to simplify trade rules and work toward a full-on trade agreement—good news if you care about jobs or global business.