White House Issues Factsheet on ‘Historic’ India–US Trade Framework After Trump’s Zero-Tariff Remark
New Delhi/Washington: The White House has issued an official factsheet outlining the contours of what it describes as a “historic” India–US trade framework, aiming to expand market access and reduce barriers between the two major economies. The clarification comes days after US President Donald Trump’s remark about “zero tariffs” created uncertainty among traders and industry observers.
The document makes clear that the understanding represents a structured roadmap rather than a final pact, setting the stage for an interim arrangement and eventually a comprehensive bilateral trade agreement designed to deepen economic cooperation.
Tariff adjustments and market access
At the heart of the framework are reciprocal tariff changes intended to ease long-standing trade frictions. The United States plans to cut its reciprocal tariff on Indian goods from 25 percent to 18 percent, while India will lower or remove duties on a wide range of American industrial and agricultural imports.
The move is expected to broaden market access for US exporters and enhance competitiveness for Indian goods entering the American market, addressing persistent concerns over tariff disparities.
Agriculture and major purchase commitments
Agricultural trade forms a central pillar of the proposed arrangement. India has indicated tariff relief on items such as dried distillers’ grains, sorghum, tree nuts, fruits, selected pulses, soybean oil, and alcoholic beverages — sectors long prioritised by Washington.
In parallel, New Delhi has signalled plans to increase purchases of American products valued at more than $500 billion across sectors including energy, technology, agriculture and coal, a step seen as an attempt to rebalance bilateral trade flows.
Tackling regulatory and digital barriers
Beyond tariffs, both sides aim to resolve non-tariff obstacles through regulatory coordination and negotiations over rules of origin to ensure benefits flow primarily to companies from the two countries.
Digital trade is another key focus area. India is expected to remove digital services taxes and engage in talks on new bilateral digital trade norms covering electronic transmissions and safeguards against discriminatory practices.
Technology cooperation and supply chain security
The framework also emphasises cooperation in advanced technology trade and strengthening supply chain resilience. Both governments have agreed to coordinate more closely on investment screening and export controls, reflecting shared concerns about economic security and strategic dependencies.
Clarifying the “zero tariff” remark
Trump’s earlier assertion that India had agreed to reduce tariff and non-tariff barriers to “zero” unsettled parts of India’s trading community. Officials have since clarified that the roadmap involves phased negotiations and calibrated reductions rather than an immediate elimination of duties.
The White House maintains that the approach is intended to gradually address imbalances and remove barriers faced by American exporters, particularly in sectors such as agriculture and automobiles.
What lies ahead
In the coming weeks, both countries are expected to begin implementing elements of the framework while negotiating unresolved areas including services trade, investment norms, intellectual property and technical standards.
Officials say the long-term objective is to transform the roadmap into a comprehensive, mutually beneficial trade agreement that reflects the expanding strategic and economic partnership between India and the United States.
