US, India announce interim trade deal framework; seeking wider deal

​​​​​​​WASHINGTON

The US and India announced Friday that they have reached terms on an interim framework deal to end a bilateral trade dispute, with President Donald Trump taking action to advance the agreement.

Trump quickly lifted a 25% second tariff he imposed on Indian goods in retaliation for its import of Russian oil, his first major step to make good on the breakthrough.

The decision to lift the import duty came as the US and India issued a statement in which they said the trade framework "reaffirms the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiation."

The talks "will include additional market access commitments and support more resilient supply chains."

"The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes," the nations said.

The terms of the agreement stipulate that India will lower or eliminate tariffs on US industrial goods and a "wide range" of US agricultural products. The US will separately lower its reciprocal tariff, separate from the secondary Russian oil tariff, to 18%, and will remove tariffs on Indian aircraft and associated parts.

The countries will also give each other preferential access to "sectors of respective interest on a sustained basis," the statement said. India separately agreed to "address long-standing barriers to the trade in U.S. medical devices."

“President Trump’s dealmaking is unlocking one of the largest economies in the world for American workers and producers, lowering tariffs for all U.S. industrial goods and a wide array of agricultural products,” US Trade Representative Jamieson Greer said in a statement.

"Today’s announcement demonstrates the deepening ties between the United States and India as we create new opportunities for farmers and entrepreneurs in both countries. I thank Indian Minister of Commerce and Industry Goyal for his leadership and commitment to achieve fair and balanced trade with the United States," he added.