India will grant the United States limited access to its agricultural market while maintaining protections for key farm sectors, according to officials from both countries, as the outlines of a tariff-reducing trade deal between Donald Trump and Narendra Modi began to emerge.
U.S. Trade Representative Jamieson Greer told CNBC that the agreement would reduce India's tariffs on American industrial goods to zero from about 13.5 per cent. India would also eliminate duties on U.S. tree nuts, fruits, and vegetables. In exchange, the United States would reduce tariffs on Indian goods to 18 per cent from 50 per cent.
An Indian government official told Reuters that the agreement includes a multi-year commitment to purchase US$500 billion in American goods. "It will be done over the years," the official said, adding that a broader pact would be negotiated over the coming months. The deal also includes an immediate reduction in tariffs on American cars.
No start date has been announced. Greer said U.S. and Indian officials were still finalising the text, with a U.S. official stating the aim was to complete that work this week or shortly afterwards.
For agriculture, the agreement provides partial market access. Greer said India would retain protections on "key areas" of its farm sector, but that the United States would continue to pursue additional access. He said India's tariff reductions for nuts, fruits, and vegetables would expand opportunities for U.S. suppliers.
The United States will maintain an 18 per cent tariff on Indian goods, Greer said, citing the scale and growth of India's trade surplus with the U.S. That surplus reached US$53.5 billion during the first 11 months of 2025, compared with US$45.8 billion for all of 2024, according to U.S. Census Bureau data.
Greer also said the Trump administration had reached "an understanding and an agreement with the Indians as well on a variety of technical barriers to trade, areas where they have not accepted U.S. standards. We know American goods are safe." He added that there would be "a process for recognizing U.S. standards," subject to India's internal procedures.
Source: Reuters
