White House releases fact sheet on India-US trade deal amid confusion over Russian oil, zero tariffs

The fact sheet provide clarity on multiple aspects of the agreement, particularly President Trump’s claims and related issues.

The Donald Trump administration on Monday called the India-US trade deal a "historic" step, which, as per the White House, will open up India’s market of over 1.4 billion people to American products. 

New Delhi and the Washington are in the final stages of signing a trade agreement that both sides have described as “historic.” However, despite the announcement, several claims made by US President Donald Trump remain unaddressed by either country, particularly his assertions that India will stop buying Russian oil and agreed to zero tariffs on US goods.

Amid the questions and uncertainty, the White House on Monday released a fact sheet addressing these issues.

The statement provide clarity on multiple aspects of the agreement, particularly President Trump’s claims and related issues.

Lets understand the what White House said in its fact sheet.

Is India stopping its purchase of Russian oil?

According to the fact sheet released by the Trump administration, the US President agreed to lift the additional 25% tariff on Indian imports in acknowledgment of New Delhi’s commitment to halt oil purchases from Russia.

Regarding this Donald Trump also signed an Executive Order removing the additional 25% tariff. 

Having said that, the confusion arose after Russia said it had received no information from India vis a vis halting Russian oil purchase. 

Last week, Ministry of External Affairs reiterated that ensuring energy security for its 1.4 billion people remains the top priority of the Indian government. 

Will India reduce tariffs to zero for the US goods? 

On February 2, While announcing a trade deal, Donald Trump claimed that India has agreed to bring down tariffs and non-tariff barriers against the US goods to Zero.

According to the joint statement, "India has agreed to either eliminate or reduce its 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."

And fact sheet issued by White House backed this statement, but the specific details of the tariffs India will retain on US goods have not yet been disclosed.

Reciprocal tariff down from 25% to 18%

The White House said, in light of India’s willingness to work with the United States to address structural imbalances in bilateral trade and common national security concerns, the US will reduce the reciprocal tariff on India from 25% to 18%.

Fact sheet also said, India will address non-tariff barriers that impact bilateral trade in priority areas. 

Statement further said, "In line with the roadmap set out in the Terms of Reference for the BTA, the United States and India will continue negotiations to address the remaining tariff barriers, additional non-tariff barriers, technical barriers to trade, customs and trade facilitation, good regulatory practices, trade remedies, services and investment, intellectual property, labor, environment, government procurement, and trade-distorting or unfair practices of state-owned enterprises."