U.S.-India Trade Breakthrough: Tariffs Reduced and Key Deals Initiated

India and the U.S. strike a significant tariff-reducing trade deal, offering market access for select agricultural products. India commits to purchase $500 billion in American goods, while the U.S. lowers tariffs on Indian imports. The agreement eases political tensions and tackles longstanding economic issues.

In a significant development, the United States and India have reached a preliminary trade agreement that aims to reduce tariffs and grant selective market access for agricultural products, as confirmed by officials from both nations on Tuesday. U.S. President Donald Trump and Indian President Narendra Modi are spearheading this initiative.

The deal entails India cutting tariffs on American industrial goods to zero from 13.5% and eliminating duties on U.S. agricultural products such as tree nuts, wine, and spirits. In reciprocation, the U.S. will lower tariffs on Indian goods to 18% from 50%. The agreement is poised to enhance economic ties, following strained relations between the two democracies.

Apart from adjusting tariffs, the deal includes India's commitment to phasing out Russian oil imports and boosting purchases of U.S. petroleum, aircraft, and pharmaceuticals. This agreement is seen as a potential economic and foreign policy victory for the Trump administration, amid ongoing domestic political challenges.

(With inputs from agencies.)