From wine to walnuts: India–US trade deal set to make American imports cheaper

India will eliminate or reduce tariffs on a wide range of US food and agricultural products under the framework for an interim trade agreement announced by New Delhi and Washington on Saturday, a move expected to make several American imports cheaper for Indian consumers.

Products slated for tariff cuts include dried distillers’ grains (DDGs), red sorghum used in animal feed, tree nuts, fresh and processed fruits, soybean oil, as well as wine and spirits. The reductions form part of reciprocal commitments aimed at easing trade frictions and expanding market access on both sides.

As part of the deal, the United States will lower tariffs on Indian goods to 18% from as high as 50%. The elevated duties had been imposed after trade negotiations stalled, with a 25% tranche introduced in August when Washington accused New Delhi of indirectly supporting Russia’s war effort through continued oil purchases.


The framework also reaffirms the commitment of both countries to continue negotiations on a broader US-India Bilateral Trade Agreement, talks that were launched by Prime Minister Narendra Modi and US President Donald Trump in February 2025 following months of strain in trade ties.

India has agreed to address long-standing non-tariff barriers affecting US exports, including in medical devices, information and communication technology products, and food and agriculture. The two sides will also work on establishing rules of origin to ensure trade benefits accrue primarily to India and the United States.

On the US side, Washington will apply a reciprocal tariff rate of 18% on Indian-origin goods such as textiles, apparel, leather and footwear, plastics, chemicals, home décor, artisanal products and select machinery. Subject to the successful conclusion of the interim agreement, the US has also indicated it would remove reciprocal tariffs on a broader set of Indian exports, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

The framework further includes commitments to ease tariffs on certain aircraft and aircraft components, strengthen cooperation on supply chain resilience, and address barriers to digital trade. India has also signalled its intention to purchase $500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology goods and coking coal over the next five years.

Both countries said they would move swiftly to implement the framework and finalise the interim agreement, with the longer-term goal of concluding a comprehensive and mutually beneficial bilateral trade pact.