The United States and India announced a provisional trade deal to lower the tariff rate on Indian goods to 18%.
On the 7th (local time), the United States and India said in a joint statement that they agreed on a provisional trade agreement framework centered on tariff cuts and deeper economic cooperation.
On the 3rd, after U.S. President Donald Trump and India Prime Minister Narendra Modi agreed by phone to conclude a trade deal, this is the first time concrete terms have emerged.
Accordingly, the United States will cut the tariff rate on most Indian products from the current 50% to 18%. India will halt purchases of Russian crude oil and eliminate or reduce tariffs on all U.S.-made manufactured goods.
India will also purchase about $500 billion (about 733 trillion won) worth of U.S. goods over the next five years, including energy, aviation, and information technology (IT) products such as graphics processing units (GPUs), and it agreed to resolve non-tariff barriers on U.S. agricultural products, medical devices, and telecommunications equipment.
That day, President Trump signed an executive order rescinding a 25% punitive tariff on India. However, because the executive order does not yet include the mutual reduction of tariffs to 18%, specific tariff adjustments are expected to be implemented through a separate executive order or publication in the Federal Register.
The two countries also agreed to cooperate on strengthening economic security and supply chain resilience, as well as on investment screening, export controls, and non-market policies related to third countries.
However, the main opposition Indian National Congress (INC) criticized the deal, saying most of the terms followed U.S. demands, undermined the national interest, and harmed farmers and traders.