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US-India Trade Deal Announced, Tariffs Cut in "Positive First Step"

The US-India Strategic Partnership Forum has welcomed a new trade announcement between the two nations, highlighting a reciprocal tariff reduction as a significant initial move. The forum states the agreement signals strong political will to work towards a comprehensive Bilateral Trade Agreement covering various sectors and barriers. This deal is seen as a step to bolster economic resilience and supply chains, with a long-term goal of expanding bilateral trade to $500 billion. Further negotiations are anticipated in the coming months to build on this foundation.

Key Points: US-India Trade Deal: Tariffs Cut, Bilateral Agreement Advances

  • Tariff cut from 25% to 18%
  • Step toward comprehensive trade deal
  • Aims to strengthen supply chains
  • Targets $500 billion bilateral trade
2 min read

US-India trade deal to benefit businesses, workers, consumers of both countries: US-India Strategic Partnership Forum

USISPF welcomes new US-India trade deal, calling tariff reduction a positive first step toward a comprehensive bilateral trade agreement.

"The reduction of India's reciprocal tariff from 25 per cent to 18 per cent marks an important and positive first step. - USISPF"

Washington DC, February 3

The US-India Strategic Partnership Forum has welcomed the announcement of an India-US trade deal, stating that the agreement between the two nations would deliver meaningful benefits for businesses, workers, and consumers in both countries.

In an official statement released on Tuesday, the USISPF said it enthusiastically welcomed President Donald J. Trump's announcement following his conversation with Prime Minister Narendra Modi, which reaffirmed their shared commitment to deepen the US-India economic partnership and advance a bilateral trade agreement.

It stated, "The reduction of India's reciprocal tariff from 25 per cent to 18 per cent marks an important and positive first step. While the agreement's specifics are pending, today's announcement signals strong political will on both sides to move toward a comprehensive U.S.-India Bilateral Trade Agreement (BTA) that addresses tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors".

According to the statement, the proposed BTA is expected to address key areas such as tariffs, market access, non-tariff barriers, and other trade-related issues across a wide range of sectors.

The forum noted that such an agreement would help strengthen supply chains and enhance economic resilience in both nations.

The USISPF further stated that both governments have made it clear that this announcement is only the beginning, with additional phases and negotiations anticipated in the months ahead.

The forum expressed encouragement over the constructive momentum generated by the announcement and said it remains optimistic about the scope and ambition of the proposed agreement.

Reiterating its commitment, the USISPF said it would continue to work closely with both the Government of India and the US Government to advance the shared objective of expanding bilateral trade towards the USD 500 billion target.

The forum added that a stronger US-India trade and investment relationship is not only critical for both economies but also central to advancing a stable, resilient, and rules-based Indo-Pacific.

Following the announcement by US President Donald Trump and PM Narendra Modi on February 2, the reciprocal tariff by the US on India was reduced to 18 per cent from 25 per cent, while the additional 25 per cent punitive levy linked to India's purchase of Russian oil has been removed.

- ANI

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Reader Comments

R
Rohit P
Finally some positive movement! The removal of the punitive levy on Russian oil is a big relief. It shows pragmatic diplomacy is working. Let's hope the details of the BTA are equally favourable and protect our farmers and MSMEs.
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Aman W
While the intent is good, I'm cautiously optimistic. We've seen announcements before. The real test will be in the fine print—market access for our services professionals and protection for our agricultural sector are non-negotiable. The government must ensure it's a truly balanced deal.
S
Sarah B
As someone working in the export sector, this is a welcome step. Strengthening supply chains with the US will make Indian manufacturing more competitive globally. The $500 billion target is ambitious, but with the right framework, it's achievable.
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Karthik V
Good for the economy overall. But I hope the benefits trickle down to the common man and aren't just for big corporations. Lower prices and more choices for consumers would be the real win.
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Vikram M
The strategic angle is key. A stable Indo-Pacific needs a strong India-US partnership. This trade deal is the economic pillar of that relationship. Jai Hind!

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