India-US Trade Deal: Farmers Protected, Tariffs Lowered, Says Piyush Goyal

Underscoring the gravity of the announcement of the interim framework of the India-US trade deal, Union Commerce Minister Piyush Goyal on Saturday said that today will be “etched in golden letters.” He assured that Indian farmers will be shielded in this agreement, stating that the lower of US tariffs from 50 per cent to 18 per cent will open up a USD 30 trillion economy to Indian exporters.

Addressing a press conference, Goyal said, “Today is a crucial day in India's journey towards becoming a developed nation. Prime Minister Modi and the US President initiated discussions in February 2025. Today will be etched in golden letters.”

“A USD 30 trillion economy is now open to our exporters. This joint statement gives every Indian citizen an opportunity for new hope, enthusiasm, and new resolutions. The 50 per cent tariff that Indian exporters faced will now be only 18 per cent. We will have the lowest tariffs compared to our neighbouring countries. Exporters of gems and pharmaceuticals will face zero duty in the US,” the minister added.

He assured benefits to Indian farmers, saying, “I can say with absolute certainty that the farmers, MSMEs, artisans, and craftsmen of India will not suffer any kind of loss.”

“Considering how the interests of our farmers and dairy sector have been protected, I believe the joint statement between the United States and India, which was finalised late last night and presented to the world, has been welcomed in every corner of the country,” Goyal said.

He further said, “Even this morning, I was watching a video. A simple artisan from Sambhal in Uttar Pradesh, working in the handicrafts sector, was saying how the tariff now is 18 per cent and how this will greatly benefit him. These were his words, which I heard this morning on an X handle from a journalist who had interviewed him.”

"Under this agreement, the reciprocal tariff of 50 per cent that was levied on Indian exports to the US will now be reduced from 50 per cent to just 18 per cent. Eighteen per cent is lower than the tariffs imposed by all our neighbouring countries and other countries with whom we compete, and this will greatly benefit our exporters in the coming days," concluded Goyal.

Interim Deal For Mutually Beneficial Trade

Notably, India and the US announced a framework for an interim deal for reciprocal and mutually beneficial trade. According to the joint statement, the framework reaffirms both countries’ commitment to the broader Bilateral Trade Agreement (BTA), which is under negotiations, launched by President Donald Trump and Prime Minister Narendra Modi in February 2025, which will include deeper market access commitments and will support more resilient supply chains.

The joint statement mentioned that the US will also remove tariffs on certain aircraft and aircraft parts from India, imposed in view of national security threats. India will eliminate or significantly cut down on its import duties on all US industrial goods and a wide range of agricultural and food products coming in, under the interim deal. This includes tree nuts, soybean oil, dried distillers’ grains, red sorghum for animal feed, wine, spirits, and fresh and processed fruits.

India also expressed its intention to buy USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years, according to the joint statement.