US, India unveil interim trade framework

The United States and India moved closer to a trade pact on Friday, releasing an interim framework that would lower tariffs, reshape energy ties and deepen economic cooperation as both countries seek to realign global supply chains.

The framework reaffirms a commitment to negotiations toward a broader bilateral trade agreement, the two governments said in a joint statement, while noting that further negotiations were needed to complete the pact.

Separately, US President Donald Trump in an executive order removed the additional 25 percent tariff imposed on Indian goods for Russian oil purchases as New Delhi “committed to stop directly or indirectly importing” Russian oil.

However, US officials will monitor and recommend reinstating the tariff if India resumes oil procurement from Russia, the order said, as Washington maintains pressure on India to restrict energy ties with Moscow.

The India-US joint statement did not mention India’s Russian oil purchases or a formal pledge from India to confirm the move.

Trump announced a deal with India on Monday to cut US tariffs on Indian goods to 18 percent from 50 percent in exchange for India halting purchases of Russian oil and lowering trade barriers.

Half of the 50 percent rate had been imposed separately by Trump as punishment for India’s purchases of Russian oil, which he said were fuelling Moscow’s war effort in Ukraine. Trump signed an executive order on Friday rescinding that 25 percent portion after India agreed this week to shift its oil buying to the US and Venezuela.

However, the statement indicated that New Delhi resisted Washington’s push to broadly open its agricultural market.

Trade Minister Piyush Goyal said the agreement safeguards farmers’ interests and rural livelihoods by “completely protecting sensitive agricultural and dairy products”.

Imports of genetically modified agricultural products would not be directly allowed as there was no such provision in the pact, while fruits like apples would allowed under a tariff quota, he said at a press briefing.