India-US Trade Deal Lowers Tariffs

India and the United States have brokered a new trade deal that will significantly lower tariffs. Under the agreement, India will reduce or eliminate tariffs on US industrial goods and a range of food and agricultural products, including tree nuts, fresh fruit, soybean oil, wine, and spirits. In return, the United States will apply an 18% reciprocal tariff on Indian goods such as textiles, apparel, leather, and certain machinery. Indian Prime Minister Narendra Modi lauded the deal, while US President Donald Trump announced it, noting Modi's promise to halt Russian oil purchases. However, Indian farmer unions, led by Samyukt Kisan Morcha, have expressed strong opposition, calling the deal a 'total surrender' to American agricultural giants and warning of cheap imports threatening local production. They have called for a nationwide protest on February 12. Indian Trade Minister Piyush Goyal has attempted to reassure farmers, stating that sensitive areas like grains, spices, dairy, and genetically modified crops were not part of the concessions. Experts anticipate a jump in US imports to India, particularly for products like soybean oil, which could further impact Indian farmers who already struggle to compete with highly subsidized US agriculture.