This article details a historic trade breakthrough between the United States and India, established through an Interim Agreement framework following a high-level meeting between President Donald J. Trump and Prime Minister Narendra Modi. The deal is framed as a major step toward a comprehensive U.S.-India Bilateral Trade Agreement (BTA).

• • Removal of Penalties: In recognition of India’s commitment to stop purchasing Russian oil, President Trump signed an Executive Order removing the additional 25% tariff previously imposed on Indian imports.

  • Lowered Reciprocal Tariffs: Due to India’s alignment with U.S. economic and national security goals, the general Reciprocal Tariff on Indian goods has been reduced from 25% to 18%.

• • Market Access for U.S. Goods: India will eliminate or significantly reduce tariffs on all U.S. industrial products and a wide array of agricultural goods, including tree nuts, fresh/processed fruits, soybean oil, wine, and spirits.

  • Massive Purchase Commitment: India has committed to purchasing over $500 billion in U.S. energy, information technology (ICT), agricultural products, and coal.

  • Digital and Tech Cooperation: India will remove its digital services taxes. Both nations will increase trade in high-tech products and establish robust rules for digital trade, including a ban on customs duties for electronic transmissions.

  • Regulatory Alignment: The deal addresses long-standing non-tariff barriers and mandates the negotiation of "rules of origin" to ensure trade benefits stay primarily within the two nations.

• • Supply Chain Resilience: The two countries committed to economic alignment to counter "non-market policies of third parties" (addressing global imbalances) and will cooperate on export controls and investment reviews.

  • Ending Unfair Practices: The administration highlights that India historically maintained some of the highest tariffs in the world (e.g., 37% on agriculture, 100%+ on autos). This deal is intended to dismantle those protectionist barriers.

The Trump Administration frames this agreement as a victory for American workers and exporters, providing a tangible path to reducing the trade deficit while strengthening a critical geopolitical partnership. Final negotiations for the full BTA will continue, covering remaining issues like intellectual property, labor, and government procurement.

Reciprocal Tariff and Security AdjustmentsKey Terms of the AgreementStrategic and Economic SecurityConclusion