Page 58 - English 01-15 March, 2026

INTERNATIONAL | India-USA Interim Trade Agreement

Key Takeaways of the India-US US Tariffs on Competitive Nations
Trade Agreement The India-USA Interim Trade Agreement imposes
lower tariffs than other competing countries. Several
$30 trillion U.S. market competing exporting countries still face high tariffs
in the US market, including China (35%), Vietnam
now grants India
(20%), Bangladesh (20%), Malaysia (19%), Indonesia
preferential access.
(19%), the Philippines (19%), Cambodia (19%), and
Thailand (19%).
n Textiles & apparel gain tariff cuts from 50% to
18%, with silk securing 0% duty access in a USD 113 Tariffs Reduced in the US on
billion U.S. market. These Indian Goods
n Machinery exports see tariffs reduced to 18%, opening Leather and Footwear, Gems and Jewellery, Home
opportunities in a USD 477 billion U.S. market. Decor, Toys, Machinery and Parts (excluding
n USD 1.36 billion of Indian agricultural exports Aircraft Parts).
receive zero additional U.S. duty access. Zero Duty Access for
n Key products, including spices, tea, coffee, fruits, Agricultural Exports
nuts and processed foods, gain zero-duty treatment.
The US will not impose any additional tariffs on
n Highly sensitive sectors such as dairy, meat, poultry Indian exports worth US$1.36 billion. Products that
and cereals remain fully protected. will benefit include spices, tea and coffee and their
extracts, copra and coconut oil, vegetable waxes,
nuts such as betel nuts, Brazil nuts, cashews, and
chestnuts, fruits and vegetables including avocados,
Wonderful to speak with my dear bananas, guavas, mangoes, kiwis, papayas, pineapples,
shiitake, and mushrooms, grains such as barley and
friend President Trump. Delighted canary seeds, bakery products, cocoa and cocoa
that Made in India products will now products, sesame and poppy seeds, and processed
have a reduced tariff of 18%. When products such as fruit pulp, juices, and jams.
two large economies and the world’s India’s Trade Agreements in
largest democracies work together, the Last Few Years
it benefits our people and unlocks Along with the European Union, the Indian

immense opportunities for mutually government has signed trade deals with Mauritius, the
United Arab Emirates, the United Kingdom, Oman,
beneficial cooperation and Australia since 2014 and announced a trade
agreement with New Zealand. In 2025, India signed
Narendra Modi, Prime Minister trade agreements with Oman and the United Kingdom.

and contribute to global growth. Commerce and in India for the World”, “Design in India for the
Industry Minister Piyush Goyal stated in Par- World”, and “Innovate in India for the World”. En-
liament that the India-US trade agreement will suring India’s energy security is a top priority for
significantly benefit Indian exporters, especially in the government, and diversifying energy sources
labour-intensive and manufacturing sectors. The is essential to address alternative markets and
agreement fully addresses India’s key sensitivities changing international landscapes. The Commerce
in the food and agriculture sectors. It will also Minister clarified in Parliament that both sides will
open up new opportunities for small and medium work together to complete the necessary technical
enterprises, entrepreneurs, skilled workers, and procedures and finalise the paperwork related to
industry. It will help realise India’s vision of “Make the trade agreement. n

56 NEW INDIA SAMACHAR || March 1-15, 2026