The trade pact between India and the U.S. — which will see tariffs on Indian exports lowered to 18% from 25% — comes less than a week after India reached a major free trade agreement with the EU. Unlike the EU deal, however, there are few details and analysts say the prospects for the deal are uncertain, including the impact on U.S. agriculture.
Announcing the deal in a TruthSocial post, Trump said India had agreed to cease buying Russian crude oil. He had previously imposed an additional 25% levy in retaliation to this. India will switch to U.S., and potentially Venezuelan, oil, while also pledging to buy $500 billion in agriculture, tech, energy, and other products, Trump said.
Trade Representative Jamieson Greer told CNBC that the deal would reduce India’s tariffs on American industrial goods to zero from about 13.5% and eliminate duties on U.S. tree nuts, fruits, vegetables, wine and spirits. In exchange, the United States will reduce its tariffs on Indian goods to 18% from 50%.
Indian Trade Minister Piyush Goyal said Tuesday that sensitive sectors such as agriculture and dairy have been protected in the deal, but opposition parties disrupted Parliament over the deal’s potential impact on agriculture, the Associated Press reported.
