U.S.-India Trade Deal Slashes Tariffs, Expands Market Access

The Trump administration is finalizing a trade deal with India, reducing tariffs on American industrial goods to zero and maintaining some agricultural protections. The deal lowers U.S. tariffs on Indian goods to 18%. India diversifies energy imports, winding down Russian oil purchases, favoring U.S. and Venezuelan sources.

The Trump administration is finalizing a trade agreement with India, aiming to significantly cut tariffs on American industrial goods from 13.5% to zero, while allowing India to retain some agricultural import protections. U.S. Trade Representative Jamieson Greer mentioned the new terms on Tuesday, emphasizing greater market access for U.S. products.

Greer noted in an interview with CNBC that India's tariffs on certain goods like tree nuts, wine, and vegetables will be reduced to zero. However, key commodities such as rice, beef, and dairy remain untouched. The deal also slashes U.S. tariffs on Indian goods to 18% due to the trade surplus.

Further, an agreement has been made on technical trade barriers and the recognition of U.S. standards, potentially opening up India's market to U.S. goods. Greer praised India's reduction of Russian oil imports, hinting at a strategic shift towards American and Venezuelan energy.

(With inputs from agencies.)