The United States and India on Friday released a framework for an interim trade agreement following President Donald Trump’s announcement of a trade deal with India. The joint White House-India statement said the framework “reaffirms the countries’ commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations.”
Under the agreement, India will “eliminate or reduce tariffs” on all US industrial products and on a wide range of US food and agricultural goods. New Delhi also plans to buy about $500 billion (€423 billion) worth of US energy goods, aircraft and other purchases over the next five years.
“India and the United States share a commitment to promoting innovation and this framework will further deepen investment and technology partnerships between us,” Prime Minister Narendra Modi said in a post on X.
The interim agreement follows Trump’s announcement earlier in the week. The US agreed to slash its reciprocal tariffs on Indian goods to 18% and Trump signed an executive order rescinding a punitive extra 25% duty he had imposed on all imports from India. The executive order states that “India has committed to stop directly or indirectly importing Russian Federation oil” and is “committed to a framework with the United States to expand defense cooperation over the next 10 years.”
In August 2025, Trump had doubled duties on Indian goods—adding a 25% duty on top of existing reciprocal tariffs—to pressure New Delhi to stop buying Russian oil. Washington and New Delhi are expected to sign a formal trade deal in March, Indian Trade Minister Piyush Goyal said on Thursday.
Edited by: Sean Sinico