Washington/New Delhi: The United States has said that India will slash tariffs on a “vast array” of American industrial and agricultural products to zero under the trade agreement announced by President Donald Trump, calling the move a major breakthrough for US exporters while noting that New Delhi will continue to protect certain sensitive sectors.
United States Trade Representative Jamieson Greer said the agreement would significantly open India’s market to American goods, describing it as a “big win” for the US economy. Speaking to CNBC’s Squawk Box on Tuesday, Greer said both sides were finalising paperwork but the core details of the deal were already settled.
According to Greer, while the US will continue to levy an 18 per cent tariff on Indian goods to address its large trade deficit, India has agreed to bring down tariffs on a wide range of American products, including agricultural items, manufactured goods, chemicals and medical devices.
He said India’s average tariff on industrial goods currently stands at around 13.5 per cent, which would be reduced to zero for nearly all products. “When I say virtually everything, I mean about 98 to 99 per cent,” Greer said. On the agricultural side, he added, tariffs on a broad spectrum of goods would also be cut to zero.
Products set to benefit include tree nuts, wine, spirits, fruits and vegetables. However, Greer noted that India, like other countries including the US, would retain protections in certain key areas. He said discussions would continue to improve access in those segments.
The US Trade Representative also highlighted progress on non-tariff barriers, saying both sides had reached an understanding on technical standards. Greer said agreements were in place on recognising certain US standards, which would help American goods gain smoother entry into India’s market of over a billion consumers.
In a separate post on X, the Office of the US Trade Representative said India would lower tariffs on a wide range of American industrial and agricultural goods to zero, describing the agreement as delivering unprecedented market access for US farmers and producers.
Greer also addressed India’s purchases of Russian oil, saying New Delhi had taken advantage of discounted crude following Western sanctions on Moscow. He claimed that India had begun winding down Russian oil imports towards the end of last year and was diversifying energy purchases, including oil, gas and propane, from the US and other sources.
President Trump had earlier announced that the US would cut its reciprocal tariff on Indian goods from 25 per cent to 18 per cent, while India would move to reduce both tariff and non-tariff barriers against American products to zero. Trump also said Prime Minister Narendra Modi had committed to significantly increasing purchases of US goods, including energy, technology, agricultural products and coal.
US Secretary of Agriculture Brooke Rollins welcomed the agreement, saying it would boost exports of American farm products to India’s growing market, support higher prices and inject fresh income into rural America. She noted that the US agricultural trade deficit with India stood at $1.3 billion in 2024 and said the deal would help narrow the gap.
