Tariff cuts on 'certain pulses', agricultural products: White House releases fact sheet on India-US trade deal

India-US ‘historic’ trade deal to open Indian markets to American products: White House

• India-US trade deal opens Indian markets to US products, boosting economic ties
• India to cut tariffs, buy $500B in US goods, and remove digital services taxes
• US reduces tariffs on Indian imports; both seek comprehensive trade deal.

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The White House on Friday said a “historic trade deal” between India and the United States will open Indian markets to American products, marking a major step forward in bilateral economic ties.

The fact sheet says India will eliminate or reduce tariffs on US industrial goods and a wide range of agricultural and food products, including “certain pulses.”

The reference to “certain pulses” in the White House fact sheet is significant, as it was not included in the joint statement issued on February 6. Outlining the key terms of the agreement, the White House said India would eliminate or reduce tariffs on all US industrial goods and a broad range of agricultural and food products.

"The key terms of the Agreement include: India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers' grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, and additional products," the statement said.

India has also committed to significantly increasing purchases of American goods.

"India committed to buying more American products and purchasing over USD 500 billion of U.S. energy, information and communication technology, agricultural, coal, and other products," the statement added.

The White House said India will also work to address non-tariff barriers affecting bilateral trade in priority sectors.

In a statement, the White House said the agreement was announced last Friday through a Joint Statement by US President Donald J. Trump, following a call with Indian Prime Minister Narendra Modi.

"Last Friday, in a Joint Statement, President Donald J. Trump announced a trade deal between the United States and India that will open up India's market of over 1.4 billion people to American products," the statement said.

According to the White House, the Joint Statement follows discussions between the two leaders last week, during which they reached a framework for an Interim Agreement on reciprocal trade and reaffirmed their commitment to negotiations on a broader US-India Bilateral Trade Agreement (BTA).

During the call, Trump also agreed to roll back additional tariffs on Indian imports.

"Also on the call, Trump agreed to remove the additional 25% tariff on imports from India in recognition of India's commitment to stop purchasing Russian Federation oil. Accordingly, the President signed an Executive Order last Friday removing that additional 25% tariff," the statement said.

The White House said that in view of India’s willingness to align with the United States on addressing trade imbalances and shared national security challenges, Washington will further reduce tariffs.

"Given India's willingness to align with the United States to confront systemic imbalances in the bilateral trade relationship and shared national security challenges, the United States will lower the Reciprocal Tariff on India from 25% to 18%," it said.

Digital trade, technology cooperation, and supply chains

The statement said both countries will negotiate rules of origin to ensure that the benefits of the agreement primarily accrue to the United States and India. India has also agreed to remove its digital services taxes.

"India will remove its digital services taxes and is committed to negotiating a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade, including rules that prohibit the imposition of customs duties on electronic transmissions," the statement said.

The two sides also committed to strengthening economic security alignment, enhancing supply chain resilience, and expanding cooperation on technology and innovation.

"The United States and India will significantly increase bilateral trade in technology products and expand joint technology cooperation," it added.

US flags India’s high tariffs, protectionist barriers

The White House noted that India currently maintains some of the highest tariffs on US goods among major economies.

"India has maintained some of the highest tariffs on the United States of any major world economy, with tariffs as high as an average of 37% for agricultural goods and more than 100% on certain autos," the statement read.

It also pointed to India’s history of protectionist non-tariff barriers.

"India also has a history of imposing highly protectionist non-tariff barriers that have banned and prohibited many U.S. exports to India," it said.

Next steps toward Bilateral Trade Agreement

According to the White House, both countries will move quickly to implement the framework and work toward finalising the Interim Agreement, with the goal of concluding a comprehensive BTA.

"In the coming weeks, the United States and India will promptly implement this framework and work toward finalising the Interim Agreement with a view to concluding a mutually beneficial BTA to lock in benefits for American workers and businesses," the statement said.

Negotiations will continue on a wide range of outstanding issues, including tariffs, non-tariff barriers, services, investment, intellectual property, labour, environment, government procurement, and state-owned enterprises.

The White House said the agreement aligns with the national emergency declared by Trump on April 2, 2025, over persistent US trade deficits driven by unfair trade practices and lack of reciprocity.

"President Trump continues to advance the interests of the American people by removing tariff and non-tariff barriers and expanding market access for American exporters, including in the agricultural sector," the statement said.

The White House described the deal as a tangible path forward toward balanced and reciprocal trade with India, one of Washington’s key trading partners.

India's stance

Union Commerce Minister Piyush Goyal, in a press conference on February 7, assured that Indian farmers would be protected under the agreement, while Indian agricultural products would be exported to the United States at zero duty.

“Agricultural products from Indian farmers will be exported to the United States at zero duty. At the same time, no tariff concessions have been granted for agricultural products from US farmers entering the Indian market,” he said.

“Products made by our farmers, including spices, tea, coffee, coconut, cashew, mango, banana, guava, pineapple, and processed items like jams and juices, will now face zero reciprocal tariff in the United States. Sensitive commodities like rice, wheat, sugar, millets, and pulses remain fully protected,” Goyal said.