US, India roll out interim trade framework
The US and India just rolled out an interim trade framework to strengthen their economic partnership and make supply chains more reliable.
This is a stepping stone toward a bigger, long-term trade agreement that both countries started working on last year, aiming for fairer and more balanced business between them.
What does the framework cover?
India will lower or drop tariffs on some US products like tree nuts, fruits, and soybean oil.
Meanwhile, the US will add an 18% tariff on certain Indian goods—think textiles, chemicals, and home decor—but the US intends to remove reciprocal tariffs on a wide range of Indian goods, including generic pharmaceuticals and gems, after successful conclusion of the interim deal, although pharmaceutical tariff outcomes remain subject to an ongoing US Section 232 probe.
The framework also covers digital trade rules and supply chain security, with India planning to buy $500 billion worth of US goods over the next five years.