U.S. and India Strike Tariff Reduction Agreement to Boost Bilateral Trade

2026-02-12 23:19:42

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The United States and India have announced a significant trade agreement focused on lowering import duties and removing market barriers. According to reports from Jin10, this deal represents a major step forward in strengthening economic ties between the two nations. The centerpiece of the accord involves substantial cuts to tariff rates on manufactured products, with specific duties on industrial goods slated to drop from 13.5% to zero—a move designed to facilitate smoother commerce in this sector.

Industrial Goods See Historic Tariff Elimination

The agreement’s most striking feature is the complete removal of tariffs on industrial products, effectively opening markets that have long carried protective duties. This development signals a shift toward greater trade liberalization between Washington and New Delhi. U.S. Trade Representative Greer highlighted this achievement as a breakthrough in negotiations, emphasizing how the elimination of these barriers will benefit manufacturers and exporters on both sides of the arrangement.

Agricultural Products Retain Strategic Protections

Additionally, while industrial sectors gain from the tariff reductions, India has secured the right to maintain certain safeguards on agricultural commodities. This balanced approach reflects the sensitivities around farm sectors in both countries, where local producers often require protection from import competition. By preserving these protective mechanisms, India ensures that its farming communities won’t face immediate disruption from cheap foreign agricultural goods.

Non-Tariff Barriers and Strategic Monitoring

Beyond traditional tariff elimination, both nations have reached consensus on scaling back India’s technical non-tariff trade barriers—regulatory and bureaucratic obstacles that can be just as restrictive as tariffs. Additionally, U.S. officials are closely monitoring India’s ongoing reduction in Russian oil purchases, a geopolitical consideration that underscores the broader strategic dimensions of this trade partnership. The combination of these measures reflects a comprehensive approach to deepening bilateral economic cooperation while addressing both commercial and strategic interests.

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