Highlights:
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White House says India will reduce or eliminate tariffs on select US industrial and agricultural goods, not all imports.
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The United States will cut reciprocal tariffs on Indian goods from 25 percent to 18 percent.
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India has committed to purchasing more than $500 billion in US energy, technology, and agricultural products over time.
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New Delhi will remove its digital services tax and negotiate new digital trade rules.
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Both countries aim to finalize an interim agreement as a step toward a broader bilateral trade deal.
The White House on Monday released a detailed factsheet outlining the newly announced India–United States trade framework, seeking to clarify President Donald Trump’s statement that India would reduce tariffs on American goods to “zero.” The clarification comes after the claim triggered concern among Indian exporters, traders, and industry groups who feared a sudden and comprehensive removal of trade protections.
According to the White House, Trump’s remark should be understood as an in-principle commitment rather than a blanket policy shift. Officials said the reference to “zero tariffs” reflects India’s agreement to eliminate or reduce duties on select US products over time, not an immediate or across-the-board removal of tariffs on all imports from the United States.
Describing the framework as a “historic” step in bilateral relations, the administration said the agreement is designed to significantly expand US access to India’s market of more than 1.4 billion people, while strengthening cooperation across technology, energy, and supply chains.
White House details US tariff reductions on Indian goods
As part of the framework, the White House said the United States has agreed to lower its reciprocal tariff rate on Indian imports from 25 percent to 18 percent. In addition, Washington will remove an extra 25 percent tariff on Indian goods, citing New Delhi’s commitment to halt purchases of Russian oil.
The administration linked this move to broader geopolitical concerns, noting that Trump has previously warned India about its energy trade with Moscow. The tariff rollback is positioned as a response to India’s pledge to change its sourcing strategy, rather than a standalone trade concession.
The factsheet emphasized that these steps are part of a phased process and will be implemented alongside continued negotiations, rather than as a one-time adjustment.
White House explains scope of India’s tariff commitments
On the Indian side, the White House said New Delhi has agreed to “eliminate or reduce tariffs” on all US industrial goods and a wide range of agricultural and food products. These include dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruits, certain pulses, soybean oil, wine, spirits, and other items.
Officials stressed that these reductions will be product-specific and phased in over time. The White House made clear that the framework does not require India to remove duties on all US imports immediately, countering interpretations that followed Trump’s initial public comments.
By clarifying the limited and staged nature of the tariff changes, the administration sought to reassure markets that the agreement allows both sides to manage domestic sensitivities while expanding trade flows.
White House highlights $500 billion purchase commitment
The White House said India has committed to substantially increasing its purchases of American goods, including more than $500 billion worth of US energy, information and communication technology products, agricultural commodities, coal, and other materials over time.
This commitment is framed as a central pillar of the trade framework, aimed at reducing the US trade deficit and supporting American producers across multiple sectors. The factsheet did not specify a fixed timeline for these purchases, but described them as a long-term undertaking tied to India’s growth and energy needs.
White House outlines digital trade and non-tariff reforms
Addressing non-tariff barriers, the White House said India has agreed to tackle regulatory and procedural obstacles that affect bilateral trade in priority sectors. As part of the framework, New Delhi will remove its digital services taxes and enter negotiations on what the administration described as a robust set of digital trade rules.
These talks are expected to cover issues such as prohibiting customs duties on electronic transmissions and addressing discriminatory or burdensome digital practices. The White House positioned these commitments as key to expanding US participation in India’s digital economy and technology sector.
White House points to supply chains and rules of origin
The factsheet also said the two countries will negotiate rules of origin to ensure that trade benefits primarily accrue to the United States and India, rather than third-party economies. The White House added that both sides will deepen cooperation on supply chain resilience, investment screening, export controls, and responses to what it described as “non-market policies” by third countries.
These measures are intended to align trade policy with broader strategic and security goals, particularly in sensitive industries.
White House clarifies Trump’s ‘zero tariff’ language
Trump’s original statement that India would reduce “tariffs and non-tariff barriers against the United States to ZERO” was later characterized by White House officials as an expression of intent. They said it signaled a willingness to lower or phase out duties on selected US products, rather than eliminate all tariffs immediately.
The framework follows a recent phone call between Trump and Indian prime minister Narendra Modi, during which both leaders agreed to pursue an interim reciprocal trade agreement. The White House said both governments aim to implement the framework in the coming weeks, while continuing negotiations toward a comprehensive US–India Bilateral Trade Agreement covering goods, services, investment, and regulatory issues.
