The joint statement followed an announcement by U.S. President Donald Trump last week that Washington would reduce import tariffs on Indian products, six months after imposing higher duties to push New Delhi to curb purchases of Russian crude, News.Az reports, citing AP.
Under the plan, tariffs on Indian goods would fall to 18% from 25%, after Indian Prime Minister Narendra Modi agreed to stop buying Russian oil, Trump said.
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Both sides described the agreement as “reciprocal and mutually beneficial” and said they would work toward a broader trade deal that includes expanded market access and more resilient supply chains.
India also pledged to eliminate or reduce tariffs on all U.S. industrial goods and a wide range of agricultural and food products, according to the statement. Trump said India would eventually lower import taxes on U.S. goods to zero and buy $500 billion worth of American products. He also signed an executive order revoking a separate 25% tariff imposed last year on Indian goods.
Opposition parties in India criticized the agreement, warning it could hurt sensitive sectors such as agriculture and dairy, which employ large segments of the population. Trade Minister Piyush Goyal said the deal protects key agricultural and dairy products, including maize, wheat, rice and some vegetables.
Goyal said the agreement would open a $30 trillion U.S. market to Indian exporters and help create hundreds of thousands of jobs. He added that tariffs would be cut to zero on many Indian exports, including generic medicines, gems and diamonds, and aircraft parts.
India has also recently expanded its trade ties, reaching a free trade agreement with the European Union and concluding deals with Oman and New Zealand.
