The White House has released a detailed fact sheet outlining the “path forward” for the historic India-US trade deal, confirming significant tariff reductions and purchase commitments while shedding light on the contentious issues of Russian oil and “zero tariff” claims. The release follows days of speculation after President Donald Trump and Prime Minister Narendra Modi agreed to a framework for an Interim Agreement, aimed at de-escalating trade tensions and aiming for a comprehensive Bilateral Trade Agreement (BTA).
According to the fact sheet, the United States will officially reduce its reciprocal tariff on Indian goods from the punitive 50 percent (including the 25 percent penalty linked to Russian oil) down to 18 percent. This move is expected to provide immediate relief to Indian exporters in sectors such as textiles, leather, gems and jewelry, and machinery, making them more competitive against regional rivals like Vietnam and Bangladesh. In a significant concession, the U.S. will also provide a preferential tariff-rate quota for automotive parts and remove duties on specific Indian aircraft components previously impacted by Section 232 national security tariffs.
In return, the fact sheet outlines India’s commitment to “eliminate or reduce” tariffs on all U.S. industrial goods and a “wide range” of agricultural products. Specific items listed for market access include dried distillers’ grains (DDGs), red sorghum, tree nuts, soybean oil, and fresh and processed fruits. Furthermore, the document highlights India’s intention to purchase over $500 billion worth of U.S. products over the next five years, spanning energy, aircraft, precious metals, and information technology.
However, the fact sheet has drawn attention for how it addresses (or fails to fully resolve) the confusion surrounding President Trump’s claims about Russian oil and “zero tariffs.” While President Trump announced that India had agreed to reduce tariffs to “zero” and stop purchasing Russian oil, the official text is more nuanced. The document states that the removal of the additional 25 percent penalty tariff is in recognition of India’s commitment to “stop directly or indirectly importing” Russian oil. This starkly contrasts with statements from New Delhi; the Ministry of External Affairs has maintained that India’s energy purchases are driven by domestic priority, and Russian officials have denied receiving any notification of a halt in trade.
Similarly, regarding the “zero tariff” claim, the fact sheet commits India to “eliminate or reduce” duties rather than a blanket zero-tariff regime across the board. It clarifies that while some duties may vanish, others will simply be lowered, protecting sensitive sectors like dairy and certain agricultural staples which remain guarded.
The “path forward” outlined in the document emphasizes immediate implementation of this framework, with negotiations continuing on unresolved issues such as labor, environmental standards, and digital trade. Both nations have also agreed to strengthen “economic security alignment” to address non-market policies of third parties—a clear reference to countering China’s economic influence.
As the implementation phase begins in the coming weeks, the focus will likely shift to the discrepancy regarding Russian energy. With the U.S. monitoring mechanism in place to verify India’s crude purchases, the durability of this “historic” truce may depend on how New Delhi navigates its strategic autonomy while adhering to the ambitious economic commitments laid out by the White House.
