- The United States has stated that India will implement zero percent tariffs on 98 to 99 percent of products imported from the US. The agreement covers all types of products which include agricultural items and industrial products. The importation of fruits and vegetables will not require any import taxes. India will maintain its power to control a limited selection of essential products.
- India has made a commitment to cease its crude oil imports from Russia. US Trade Representative Jamieson Greer shared these details during an interview on CNBC on Tuesday. White House Press Secretary Carolina Leavitt also spoke about the agreement to the media and Fox News.
Tariff Reductions and Trade Impact
Jamieson Greer stated that India will continue to impose an 18 percent tariff. He explained that the US has a trade deficit with India. In return, India has agreed to reduce tariffs on a wide range of US products.
Key points highlighted by Greer include:
- India currently imposes an average tariff of 13.5 percent on US industrial products
- The tariffs will decrease until they reach no value
- All agricultural products and manufactured goods together with chemical products and medical devices will be part of this system
- All products including almonds and pistachios and wine and alcoholic beverages and fruits and vegetables will receive zero import duty
- Greer described this development as a major benefit for the US.
Oil Imports from Russia
Greer also addressed India’s oil imports. He said India did not import crude oil from Russia before 2022–23. After the Ukraine war began, India increased imports to take advantage of discounted prices. According to Greer, India has been reducing these imports since last year following warnings from former President Donald Trump.
US–India Political Relations
White House Press Secretary Carolina Leavitt explained that Donald Trump considers Prime Minister Narendra Modi to be an important person. She explained that the trade agreement will result in:
- The US government will charge an 18 percent tariff on products imported from India
- India will apply zero tariffs on US products
- India has committed to stopping oil purchases from Russia
- The US has agreed to import oil from Venezuela
- Prime Minister Modi has committed to spending $500 billion on essential US industries
Diplomatic Engagement Continues
External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio welcomed the expected signing of the trade agreement. Jaishankar met Rubio during his visit to the US for a conference on critical minerals. The two leaders confirmed their intention to enhance both their bilateral and multilateral partnerships through Quad cooperation.
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