New Delhi: Tariffs slashed after India-US trade deal: Here are sectors expected to benefit
India and the United States have announced an interim trade deal, releasing a framework that slashes tariffs, resets energy cooperation and strengthens economic ties as the two sides seek to adjust global supply chains.
The interim deal is expected to open up a USD 30 trillion market for Indian exporters, particularly MSMEs, farmers and fishermen. Under the arrangement, US tariffs on Indian products will be reduced to 18 per cent from the earlier 50 per cent. Follow live updates here.
India, in turn, will scrap or lower duties on all US industrial goods and on a broad range of American food and farm products. These include dried distillers’ grains, red sorghum used for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, along with other items, the statement said.
The sharp cut in tariffs from 50 per cent to 18 per cent is likely to benefit multiple sectors involved in the export of major Indian goods and products.
As per a joint statement released by both sides, India has indicated plans to buy USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology items and coking coal over the next five years.
“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 statement said.
The statement also said that US President Donald Trump, through an executive order, has withdrawn the 25 per cent tariff imposed on India in August last year over its purchase of Russian oil.
The decision was taken after noting that India has taken “significant steps” and that New Delhi has pledged to stop importing oil from Moscow, directly or indirectly.
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