United States and India announce framework for interim reciprocal trade agreement

The United States and India announced a framework for an Interim Agreement as part of ongoing negotiations toward a broader U.S.-India Bilateral Trade Agreement (BTA). The framework includes reciprocal tariff changes — India will cut or eliminate tariffs on many U.S. industrial and agricultural goods while the United States will apply an 18% reciprocal tariff on certain Indian goods under Executive Order 14257, with potential removals tied to the agreement’s completion. The two countries also agreed to address non-tariff barriers (including medical devices and ICT standards), set rules of origin, strengthen economic-security cooperation, and pursue expanded trade in technology products; India intends to purchase $500 billion in U.S. goods over the next five years.