According to the US President’s 2026 Trade Policy Agenda, the interim framework envisages tariff reductions by India on industrial goods and a wide range of agricultural products.
Gaps remain on “sensitive issues” in the US-India bilateral trade deal talks, even as both nations are continuing to work towards an agreement that will “open the Indian market for American products” and reduces India’s 2025 trade surplus of $58.2 billion, according to the US President’s 2026 Trade Policy Agenda and 2025 annual report.
Tariff cuts proposed
The report, released by the USTR on Monday, reiterated aggressive targets for the trade deal despite the adverse US Supreme Court judgement on the Trump regime’s reciprocal tariffs. “Under the interim agreement, India will eliminate or reduce tariffs on all US industrial goods and a wide array of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products,” the report noted, reflecting the joint statement issued by the two countries on February 6.
America first push
This year’s Trade Policy Agenda outlines how the administration will capitalise off the success from the past year, advancing the prosperity of Americans today and the generations to follow, USTR Jamieson Greer said in a statement.
“President Trump continues to flip the script on forty years of non-reciprocal trade practices and harmful globalist policies, eliminating long-standing barriers and strengthening our workers’ competitiveness..American farmers, ranchers, and producers are already reaping the benefits of President Trump’s America First approach, with domestic production scaling up and new markets opening for US exports abroad,” Greer said.
Since talks did not conclude between India and the US on a deal nor a text signed, New Delhi is under no obligation to adhere to the original terms that were being negotiated, some experts suggested.
SC verdict impact
The balance has seemingly tilted more in favour of India after the SC judgement, that led to replacement of the US reciprocal tariff on India of 25 per cent (promised 18 per cent under the framework interim pact) with short-term global tariffs of 10 per cent, the same as any other country.
Irrespective of the changed tariff landscape (earlier tariffs for India were being brought down to 18 per cent by the US under the deal while now tariffs are already at 10 per cent), the obligations listed out for India in the policy agenda continue to be ambitious. “Under the interim agreement, India will address long-standing barriers to trade in US medical devices; eliminate restrictive import licensing procedures that delay market access for, or impose quantitative restrictions on US ICT goods… India will also address long-standing NTBs to the trade in US food and agricultural products,” the report noted.
The US and India will strengthen economic security alignment to enhance supply chain resilience and innovation through complementary actions to address, the report further said.
Global ART deals
Since Trump announced his reciprocal tariff programme on April 2 2025, the US has signed ARTs (agreement on reciprocal tariffs) with Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, and Taiwan, the report stated.
Framework deals have been announced with India, Ecuador, the European Union, Japan, North Macedonia, South Korea, Switzerland and Liechtenstein, Thailand, and Vietnam, it added.
“The ART program has produced new broad-ranging commitments on market access, labor and environmental standards, and national and economic security, all while retaining the tariffs needed for our reindustrialisation,” it noted.
India seeks clarity
India postponed the visit of its negotiating team to Washington after the US Supreme Court judgement invalidating reciprocal tariffs as it said it wanted more time to study its implications. Soon after the judgement was announced on February 20, Trump said, the “India deal is on” and “nothing changed” regarding the pact with India.
Published on March 3, 2026