India-US trade deal: Which American products are about to get cheaper in India

NEW DELHI: India will eliminate or reduce tariffs on a wide range of US food and agricultural products, a move that is expected to make several American imports cheaper for Indian consumers, according to a joint statement released by India and the United States on Saturday announcing the framework for an interim trade agreement.Products that are set to see tariff cuts include dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, and wine and spirits. The tariff changes are part of reciprocal commitments outlined in the interim pact aimed at easing trade tensions and improving market access on both sides.

“The US and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade,” the joint statement said.Under the framework, the United States will reduce tariffs on Indian goods from 50% to 18%. The higher duties had been imposed after trade talks stalled, with 25% of the tariffs introduced in August when Washington accused New Delhi of supporting Russia’s war efforts against Ukraine through oil purchases.The interim agreement also reaffirms the commitment of both countries to continue negotiations on a broader US-India Bilateral Trade Agreement. These talks were launched by Prime Minister Narendra Modi and US President Donald Trump in February 2025 following months of strain in trade ties.As part of the framework, India has agreed to address long-standing non-tariff barriers affecting US exports, including in medical devices, information and communication technology goods, and food and agricultural products. The two sides also plan to establish rules of origin to ensure trade benefits accrue mainly to India and the United States.On the US side, Washington will apply a reciprocal tariff rate of 18% on Indian-origin goods, including textiles, apparel, leather and footwear, plastics, chemicals, home décor, artisanal products and certain machinery. Subject to the successful conclusion of the interim agreement, the US has also said it will remove reciprocal tariffs on a wider set of Indian exports, including generic pharmaceuticals, gems and diamonds, and aircraft parts.The framework further includes commitments on easing tariffs on certain aircraft and aircraft parts, cooperation on supply chain resilience, and addressing barriers to digital trade. India has also indicated it intends to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products and coking coal over the next five years.Both countries said they will work towards promptly implementing the framework and finalising the interim agreement, with the longer-term objective of concluding a mutually beneficial bilateral trade agreement