‘A Big Win’: US Trade Rep Jamieson Greer Reveals India to Slash Tariffs to Zero on 99% of American Goods

trade agreement as a transformative moment for American exporters. While the formal legal text is currently being finalized, Greer confirmed that the core specifics of the deal are locked in, signaling a massive shift in the economic relationship between the two nations.

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Key Terms: Market Access and Tariff Cuts

The agreement focuses on dismantling trade barriers that have historically hindered US access to the Indian market.

• Industrial Revolution: India’s average tariff on industrial goods, currently at 13.5%, will be eliminated. Greer noted that tariffs will drop to zero for roughly 98–99% of these products.
• Agricultural Breakthrough: Significant concessions have been made for US farmers. Tariffs will go to zero for a wide array of products, including tree nuts, wine, spirits, fruits, and vegetables.
• Healthcare and Tech: The deal opens doors for American medical devices, chemicals, and manufactured goods, providing a competitive edge in one of the world’s fastest-growing economies.

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The “18% Rule” and Trade Deficit

Despite the sweeping cuts from the Indian side, the United States will maintain a level of protectionism.

• US Tariffs: The US will continue to levy an 18% tariff on Indian goods. Greer justified this by pointing to the “giant trade deficit” the US currently holds with India.
• Non-Tariff Barriers: Beyond taxes, India has agreed to scrap several non-tariff barriers and recognize specific US standards, making it easier for American companies to navigate Indian regulations.
• Sensitive Sectors: Both nations have retained “protectionist cushions” for highly sensitive domestic industries, ensuring that essential national interests remain safeguarded.

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Strategic Opportunity

Greer described the timing as perfect, stating, “The time has come, and now we have the deal.” The agreement is seen as a strategic win for the Trump administration, aiming to rebalance trade while strengthening a key geopolitical alliance in Asia.

While the deal has faced some domestic criticism in India—most notably from Akhilesh Yadav, who termed it a “Dheel” (relaxation) rather than a “Deal”—the US maintains that this creates a level playing field for American labor and manufacturing.