Washington, United States. The United States and India released an interim framework aimed at lowering tariffs, reshaping energy ties and deepening economic cooperation as both countries seek to realign global supply chains.
Interim framework and next steps
The two governments said in a joint statement that the framework reaffirmed a commitment to negotiations toward a broader bilateral trade agreement, while noting that further negotiations were needed to complete the pact.
Executive order on tariff linked to Russian oil
In a separate move, US President Donald Trump signed an executive order removing an additional 25% tariff imposed on Indian goods for Russian oil purchases after New Delhi “committed to stop directly or indirectly importing” Russian oil.
The order said US officials will monitor and recommend reinstating the tariff if India resumes oil procurement from Russia, as Washington maintains pressure on India to restrict energy ties with Moscow.
The India-US joint statement did not mention India’s Russian oil purchases or a formal pledge from India to confirm the move.
Tariff levels and energy sourcing
Trump announced on Monday a deal with India to cut US tariffs on Indian goods to 18% from 50% in exchange for India halting purchases of Russian oil and lowering trade barriers.
Half of the 50% rate had been imposed separately by Trump as punishment for India’s purchases of Russian oil, which he said were fuelling Moscow’s war effort in Ukraine. Trump rescinded that 25% portion on Friday after India agreed this week to shift its oil buying to the U.S. and Venezuela.
Agriculture and political reactions
The joint statement indicated that New Delhi resisted Washington’s push to broadly open its agricultural market.
Trade Minister Piyush Goyal said in a post on X that the agreement safeguards farmers’ interests and rural livelihoods by “completely protecting sensitive agricultural and dairy products”.
India’s opposition Congress party said the trade deal was concluded largely on US terms and hurt farmers and traders, calling it a pact that compromised national interests.
How do you think the interim framework could affect tariffs and market access between the United States and India?
