US considering further tariff reductions on Indian goods
What's the story
The US is considering additional tariff reductions on Indian goods, following recent Bilateral Trade Agreement talks. The move comes after a major trade deal with India was announced, reducing tariffs from 50% to 18%. This marks the end of a negotiation process between the two countries that lasted approximately a year. The interim framework aims to open up a significant market opportunity for Indian exporters.
Deal details
US to cut reciprocal tariffs on Indian goods
The interim framework of the trade deal includes major tariff concessions and changes aimed at boosting trade. India has agreed to eliminate or reduce tariffs on US industrial goods, as well as a wide range of food and agricultural products. Meanwhile, the US has agreed to cut reciprocal tariffs on Indian goods to 18%, opening up a huge market in sectors like textiles & apparel, leather & footwear, plastic & rubber products.
Tariff removal
Other key features of the trade deal
The US has also agreed to remove tariffs on certain Indian aircraft and aircraft parts. The deal mentions India getting a preferential tariff rate quota for automotive parts. Further, tariffs will be reduced to zero on a wide range of products such as generic pharmaceuticals, gems, and diamonds. Both countries have agreed to provide preferential market access in sectors of mutual interest on a sustained basis.