The United States and India have reached a major interim trade breakthrough, with Washington set to remove the additional 25 percent duty on Indian goods from February 7. Under the deal, U.S. tariffs on India will immediately drop to 18 percent, while New Delhi will reduce duties on American industrial and agricultural products including nuts, fruits, soybean oil, wine, and spirits, aiming for balanced market access.
The framework also outlines a path to zero tariffs in key sectors such as generic pharmaceuticals, gems and diamonds, and aircraft parts after the interim phase. Officials say the pact will boost India’s export competitiveness and support the Make in India initiative, with the White House describing it as a stepping stone toward a comprehensive Bilateral Trade Agreement between President Trump and Prime Minister Modi.
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