U.S. and India unveil interim trade framework toward a broader pact

The United States and India released an interim framework that would lower tariffs, reshape energy ties and deepen economic cooperation while reaffirming talks toward a broader bilateral trade agreement. Separately, the U.S. removed an extra 25% tariff tied to India’s purchases of Russian oil, and officials said they will monitor oil imports for possible reinstatement.

The United States and India issued an interim trade framework aimed at lowering tariffs, reshaping energy ties and deepening economic cooperation. The framework reaffirms a commitment to negotiate a broader bilateral trade agreement, though further talks are needed to complete a full pact. U.S. President Donald Trump signed an executive order removing an additional 25% tariff that had been linked to India’s purchases of Russian oil after an Indian commitment was reported. The joint statement did not explicitly mention India’s Russian oil purchases. Key developments: - The interim framework proposes lower tariffs, altered energy arrangements, and deeper economic cooperation between the two governments. - Both sides said they remain committed to negotiating a broader bilateral trade agreement, and additional negotiations are required to finalize it. - President Trump rescinded an extra 25% tariff that had been imposed over India’s Russian oil purchases, citing a reported shift in India’s procurement. - U.S. officials will monitor India’s energy purchases and may recommend reinstating the tariff if India resumes oil procurement from Russia. - New Delhi resisted broad opening of its agricultural market; Trade Minister Piyush Goyal said sensitive agricultural and dairy products are fully protected and that imports of genetically modified agricultural products were not directly allowed under the pact. - India’s opposition Congress party criticized the deal as being concluded on U.S. terms and said it harmed farmers and traders. Summary: The interim framework narrows immediate areas of cooperation and sets a path for further negotiations toward a broader U.S.-India trade agreement. Officials said additional talks are needed to complete the full pact and that monitoring of energy purchases will continue. Undetermined at this time.