The United States and India on Friday unveiled a framework for an interim trade agreement after President Donald Trump announced a trade deal with India earlier this week. The joint White House–India statement said the framework reaffirms the countries’ commitment to ongoing negotiations toward a broader US-India Bilateral Trade Agreement (BTA).
Under the interim arrangement, India has agreed to 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 purchase roughly $500 billion (€423 billion) in US energy products, aircraft and other goods over the next five years.
Prime Minister Narendra Modi said in a post on X that India and the United States share a commitment to promoting innovation, and that the framework will deepen investment and technology partnerships between the two countries.
The announcement follows Trump’s earlier move this week. Washington agreed to cut 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 notes that India has committed to stop directly or indirectly importing Russian Federation oil and to pursue 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 by adding a 25% levy on top of existing reciprocal tariffs as leverage to pressure New Delhi to halt purchases of Russian oil. Indian Trade Minister Piyush Goyal said on Thursday that Washington and New Delhi are expected to sign a formal trade deal in March.