India-US Trade Deal Updates Revised Tariff And Market Access Commitments
The article outlines changes to the India-US interim trade deal factsheet, including tariff reductions to 18% for multiple product categories, revised purchase commitments, and a shift from removing digital services taxes to negotiating digital trade rules.
Business
The United States has quietly edited its factsheet on the recent “historic trade deal” with India, softening and deleting several earlier claims. References to Indian tariff cuts on pulses, a firm $500 billion purchase “commitment,” and the removal of digital services taxes no longer appear in the updated American document.
The revised factsheet follows the joint announcement of the India-US interim trade deal last week, after nearly a year of talks. Washington had first published its version of the “path forward” on Tuesday, but later replaced that text with altered language on market access, purchases and digital rules.
India-US trade deal: changes to tariff and purchase language
In the original factsheet, Washington had said, “India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, and additional products.” Pulses are missing in the current version.
The American document also now tones down language on India’s planned imports from the United States. Earlier, it read, “India committed to buy more American products and purchase over $500 billion of US energy, information and communication technology, agricultural, coal, and other products.” The replacement text states, “India intends to buy more American products and purchase over $500 billion of US energy, information and communication technology, coal, and other products.”
India-US trade deal: digital tax and rules on online commerce
Another adjustment concerns digital services taxes and online trade. The first factsheet said, “India will remove its digital services taxes and committed to negotiate a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade, including rules that prohibit the imposition of customs duties on electronic transmissions.” The updated version drops the removal pledge.
The current wording limits itself to negotiations on rules. It now states, “India committed to negotiate a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade.” There is no longer any mention of India ending digital services taxes or banning customs duties on electronic transmissions.
India-US trade deal: tariff cuts and product sectors
The interim agreement, reached after negotiations that began in February 2025, gives Indian exporters some relief. India is set to benefit from US duties coming down to 18% from 50% on several product categories, including textiles, garments, leather, footwear, plastic goods, rubber items, chemicals, home decor, artisanal products and selected machinery.
The main tariff shift under the India-US trade deal can be summarised as follows:
| Item category | Previous US duty | New US duty |
|---|---|---|
| Textiles and garments | 50% | 18% |
| Leather and footwear | 50% | 18% |
| Plastic and rubber goods | 50% | 18% |
| Organic chemicals | 50% | 18% |
| Home decor and artisanal items | 50% | 18% |
| Select machinery categories | 50% | 18% |
The framework for this Interim Agreement was settled during a telephone call between PM Narendra Modi and US President Donald Trump last week. Their conversation came after multiple recent rounds of talks, which resumed once earlier discussions broke down following Trump’s decision to impose 50% tariffs on imports from New Delhi.
Of that 50% duty, a 25% rate had been brought in during August. At that time, Washington alleged that India was helping Russia’s “war machine” in Ukraine through its ongoing purchases. The revised factsheet now presents a narrower description of obligations, even as the broader interim India-US trade deal moves ahead.
