MC EXCLUSIVE India-US Trade Deal: Only one aspect on "market access" announced by Trump so far, says official

(Image: Reuters)

• Only market access aspect of India-US trade deal announced so far
• US to cut tariffs on Indian goods to 18 percent from 50 percent
• India may exclude sensitive farm and dairy items from market-opening commitments.

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There are 4-5 aspects in the India-US Trade Deal, and only the first one on market access has been announced by US President Donald Trump so far, a senior government official told Moneycontrol.

"The announcement currently is only on market access. The details are being worked out by Commerce Ministry," said the official, adding that any confirmation or denial on improving access of American farm products to India’s market "can’t be given at the moment".

US President Donald Trump announced the trade deal between India and the US on Truth Social on February 2, saying the agreement would significantly roll back the reciprocal tariffs imposed from mid-2025. As part of the agreement, Trump claimed the US will cut reciprocal tariffs on Indian goods to 18 percent from 50 percent, while duties on American products imported into India are expected to fall to zero.

Commerce Secretary Rajesh Agrawal had said on January 15 that "the first tranche of the India–US trade deal, which is expected to help lower reciprocal tariffs on Indian exports, is close to being finalised."

The person further said that the chapter on CPTF (Customs Procedures and Trade Facilitation) in the deal has not been announced by Trump yet. The CPTF chapter would simplify, harmonize, and standardize border procedures to expedite cargo clearance. It will focus on transparency, advance rulings, risk management to reduce trade costs. "It will be announced later, most likely."

Earlier in the morning today, US Secretary of Agriculture Brook Rollins wrote on X that "new US-India deal will export more American farm products to India's massive market, lifting prices, and pumping cash into rural America. In 2024, America’s agricultural trade deficit with India was $1.3 billion. India’s growing population is an important market for American agricultural products and today’s deal will go a long way to reducing this deficit."

However, another government official, confirmed to Moneycontrol today that India is expected to stick to its long-standing position of keeping sensitive agricultural goods and dairy items out of the trade deal with the US, indicating these sectors are largely unlikely to be part of any major market-opening commitments.

The official said that negotiators from both sides are currently working on the documentation for the trade deal and are in discussions on the same.