The “Interim Agreement” is a narrowly scoped, near‑term package of reciprocal market‑access and tariff changes (and parallel commitments) to be implemented quickly to advance the talks. The broader Bilateral Trade Agreement (BTA) is the comprehensive, longer‑term pact both sides are negotiating that will cover additional market access, detailed rules (digital trade, services, state‑owned enterprises, etc.), and durable enforcement mechanisms. The joint statement frames the Interim Agreement as a milestone toward, and constituent step within, completion of the full BTA negotiations launched Feb 13, 2025.
Executive Order 14257 (April 2, 2025) declared a national emergency tied to large, persistent U.S. goods trade deficits and created a ‘‘reciprocal tariff’’ policy: a baseline additional ad‑valorem duty (10%) and higher country‑specific rates set in Annex I, applied until underlying conditions are remediated. The joint statement says the U.S. will apply an 18% reciprocal tariff on certain originating Indian goods “under Executive Order 14257, as amended” — i.e., India was assigned an 18% country‑specific rate under the EO’s implementation/amendments, and the White House ties temporary removal/adjustment of that rate to completion of the Interim Agreement and subsequent orders (e.g., EO 14346) that modify Annex lists.
A U.S. Section 232 investigation is a Commerce Department probe, authorized by Section 232 of the Trade Expansion Act of 1962, that examines whether imports of a product threaten U.S. national security; if the Secretary of Commerce finds a threat, the President may impose remedies (tariffs, quotas, or other measures). Commerce opened a Section 232 investigation of pharmaceuticals and pharmaceutical ingredients in April 2025; its findings could determine whether the U.S. treats generic pharmaceuticals/ingredients as national‑security‑sensitive and therefore whether tariffs, quotas, or other negotiated outcomes (including carve‑outs or removal conditions) apply to those items in the Interim Agreement or afterward. The joint statement makes U.S. outcomes for generics “contingent on the findings” of that 232 probe, meaning the investigation’s conclusions will shape what the U.S. will negotiate or remove.
“Rules of origin” are the criteria used to determine where a good ‘‘originates’’ for preferential trade treatment — typically tests on how much value is added, where inputs are produced, or whether goods are substantially transformed. Under the agreement, rules of origin will be written so only products that meet the specified U.S.–India origin/value‑content and processing tests will qualify for the tariff preferences in the Interim Agreement; imports that don’t meet those origin requirements would continue to face the higher (reciprocal or MFN) U.S. tariffs. In practice the rules set percentage‑of‑value tests, tariff‑shift or specific processing thresholds, and documentation requirements enforced at import by customs authorities.
Non‑tariff barriers (NTBs) are rules, standards, licensing, testing, certification, procurement practices, or administrative measures that restrict or delay trade despite no or low tariffs. The joint statement asks India to address long‑standing NTBs that affect U.S. exports — specifically to: remove barriers to U.S. medical devices (accept U.S. or international safety/licensing standards), eliminate restrictive import‑licensing procedures that delay access for U.S. ICT goods and quantitative restrictions, and decide within six months to accept U.S‑developed or international standards/testing for identified sectors; it also asks India to address longstanding NTBs on U.S. food and agricultural products.
The joint statement describes the $500 billion figure as an intention — “India intends to purchase $500 billion of U.S. … over the next 5 years.” It is presented as a political/commercial target rather than a legally binding, self‑executing commitment; the statement does not specify an independent enforcement mechanism or penalties. Any enforceable obligations to implement or guarantee purchases would generally need to be written into a negotiated treaty text (the Interim Agreement or BTA) or implemented through purchase contracts and would be subject to monitoring and dispute‑settlement provisions that the parties agree to in the final texts.
The proclamations and annexes cited are presidential actions implementing Section 232 national‑security import measures and EO reciprocal‑tariff lists; they identify which products faced earlier national‑security duties and which items are excluded or eligible for special treatment: