The US said India will reduce tariffs to zero on a “broad range” of American industrial and agricultural goods such as “fruits, vegetables” under a trade deal announced by President Donald Trump.
The US described it as a “huge victory” as India continues to control “certain key areas” where it enjoys protection.
“It’s here. The time has come, and now we have an agreement. We’ll finish papering it, but we know the specifics. We know the details. It’s a very exciting opportunity,” United States Trade Representative Jamieson Greer said in an interview on Tuesday (Feb. 3, 2026). CNBC Squawk Box.
Mr. Greer said the US will continue to impose some level of tariffs against India – 18% – “because we have this huge trade deficit with them, but they have agreed to lower their tariffs for us on various agricultural products, manufactured goods, chemicals, medical devices, etc. This is an exciting opportunity for both countries,” he said.
Giving details of the agreement, Mr. Greer said that with India now, the average tariff on industrial goods is around 13.5%.
“It’s going to go to zero for virtually everything. When I say virtually, I mean 98-99%. On the agricultural side, there’s a wide, wide range of agricultural commodities. So it’s going to go to zero,” he said.
“India, like every country in the world, including the United States, has some protection around certain key areas where they continue to control it. We will continue to work on access. But they are going to zero on various things, tree nuts, wine, spirits, fruits, vegetables, etc. This is a big win,” Mr. Greer said.
Separately, in a post on USTR X, “India cuts tariffs on a wide range of US industrial and agricultural goods to 0%. President Trump’s historic deal with India gives American farmers and producers unprecedented market access.” On non-tariff barriers, he said removing tariffs is one thing, but often, non-tariff barriers create problems.
“So we have an understanding and an agreement with the Indians on various technical barriers to trade areas where they do not accept US standards.”
“We know American goods are safe, we know they’re effective, etc. We have effective regulation in the US, sometimes very effective. So we’ve contracted with them in the process of recognizing some US standards. They obviously have their own political considerations and their own processes for accepting those standards, but this is an important part of this trade agreement,” he said.
Asked about Delhi’s purchase of Russian oil, Mr Greer said that before 2022-23, India would not really import Russian crude.
“They took advantage of the situation where Russian crude was trading at a discount because they couldn’t get it to any other country because of the sanctions. President Trump has been very precise… Let the Indians know that we support the Russian war effort.”
“And since the end of last year, the Indians started to stop buying Russian oil. We are monitoring that. They are diversifying their energy purchases from the US, not just oil, but purchases of gas, propane and other things. It is increasing. We will monitor that. Obviously, they want to diversify from different sources. The Indians are making the right choice to do this,” Mr. Greer said.
A Truth is social In a Monday (February 2, 2026) post, Mr. Trump said that, effective immediately, both sides agreed to a trade deal under which the US would reduce its reciprocal tariffs on India from 25% to 18%. India will continue to reduce its tariffs and non-tariff barriers against the United States to “zero”.
“The Prime Minister has committed to ‘Buy American’ at a higher level, with $500 billion in US energy, technology, agriculture, coal and many other products.
“Our wonderful relationship with India will only get stronger going forward. Prime Minister Modi and I have done two things that most people can’t say,” Mr Trump said.
US Agriculture Secretary Brooke Rollins thanked Mr Trump for delivering “once again” to American farmers.
“The new US-India deal will export more American agricultural products to India’s massive market, raising prices and pumping money into rural America,” Mr. Rollins said in the post. X.
In 2024, America’s agricultural trade deficit with India will be $1.3 billion, he said, adding that India’s growing population is a “major market” for American agricultural products and this The agreement will go a long way in reducing the deficit.
“America’s first win on dozens of deals for agriculture,” Mr. Rollins said.
