Just days after President Donald Trump heralded a new trade agreement with India, the White House emphasized that dialogue on several critical hurdles continues unabated. The interim pact lays out primary terms and a roadmap for execution, yet negotiations persist on lingering tariff and non-tariff impediments.
Details emerged in a fact sheet issued post a recent phone call between Trump and Indian Prime Minister Narendra Modi. The discussion solidified consensus on an interim framework and renewed pledges to expand bilateral trade ties comprehensively.
White House statements outline continued focus on residual tariffs, extra non-tariff obstacles, technical barriers, customs procedures, trade facilitation measures, and enhanced regulations. Broader agenda items include services trade, investments, IP protection, labor and environment standards, public procurement policies, and curbing distortions from government-backed firms.
Even as thorny issues linger in negotiation, immediate actions from the interim accord are greenlit. Trump is lifting extra 25% tariffs on goods from India, rewarding New Delhi’s vow to cease Russian oil imports—an executive order has been signed accordingly.
The US is also slashing its retaliatory tariffs on India to 18% from 25%, acknowledging India’s steps toward rectifying trade deficits and bolstering security cooperation. In response, India commits to ramping up US imports and dismantling non-tariff roadblocks. Joint rule-making will prioritize benefits for both economies.
A spotlight falls on digital trade: India drops its digital tax, paving the way for mutual rules that exempt e-commerce from duties and prevent bias against foreign digital services.
Economic resilience takes center stage, with agreements to fortify supply chains, spur innovation, and expand tech partnerships. Notably, the White House pointed to India’s steep tariffs on American exports—37% average on farm goods and exceeding 100% on select autos—underscoring the need for reciprocity.