US-India trade deal: What does it mean for both countries
US President Donald Trump and India's Prime Minister Narendra Modi just reached a framework for an Interim Agreement (a Joint Statement and framework) that would cut tariffs on both sides.
An Executive Order effective February 7 removed an additional 25% duty, reducing the effective US rate on some Indian exports from about 50% to about 25%; the Joint Statement commits to a further reciprocal reduction to 18% with no effective date specified, and the 25% duty that had been applied to imports from India tied to India's purchases of Russian oil was removed starting February 7.
It's a big move aimed at making trade smoother between the two countries.
What India will do under the deal
India will lower tariffs on a bunch of US goods—think industrial products, dried grains, nuts, fruit, wine, and spirits—but will still protect its most sensitive farm sectors.
Both countries are also promising to tackle those tricky non-tariff barriers (like tech regulations), with extra focus on working together in areas like GPUs and data centers.
Other key takeaways from the deal
India intends to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years.
There's also talk of working toward an even bigger trade deal down the road—and if things change for either country, they've built in some flexibility to adjust tariffs as needed.