India-US trade deal: Apparel, footwear, textiles — Here's the full list of items that will have 18% reciprocal tariffs

India-US trade deal: India and the United States on 6 February announced an interim trade framework ahead of their Bilateral Trade Agreement (BTA), with commitment from both sides to broaden trade and reduction in the US reciprocal tariffs to 18%.

This follows the Truth Social announcement by Trump on 3 February, which was also confirmed by Prime Minister Narendra Modi on social media platform X (formerly Twitter). However, at the time, the details of the agreement were not clear. The more comprehensive BTA is still set to follow.

India-US interim trade deal: What's proposed?

Under the framework, India will eliminate or reduce tariffs on all US industrial goods and a broad set of agricultural and food products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

In turn, Washington will apply a reduced reciprocal tariff rate of 18% on Indian exports, with scope for further reductions as negotiations move forward.

The framework also includes additional market access commitments and support more resilient supply chains.

“The Interim Agreement between the United States and India will represent a historic milestone in our countries' partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes,” the statement said.

US-India trade deal: Full list of items with 18% tariff rate

United States will apply a reciprocal tariff rate of 18% on originating goods of India, including:

• Textile and apparel,
• Leather and footwear,
• Plastic and rubber,
• Organic chemicals,
• Home décor,
• Artisanal products, and
• Certain machinery.

US tariffs removed on THESE items: Check details

• Notably, the announcement said that subject to the successful conclusion of the Interim Agreement, reciprocal tariffs will be removed “on a wide range of goods” including generic pharmaceuticals, gems and diamonds, and aircraft parts.
• India will also receive a preferential tariff rate quota for automotive parts subject to the tariff imposed to eliminate threats to national security found in Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts into the United States), as amended.
• Contingent on the findings of the U.S. Section 232 investigation of pharmaceuticals and pharmaceutical ingredients, India will receive negotiated outcomes with respect to generic pharmaceuticals and ingredients.

Trump tariff: How India fares vs China, Japan, Pakistan?

Last year, Trump had imposed a combined 50% tariff rate on India — among the highest in the world, which comprised 25% reciprocal duties and 25% “punishment” for buying Russian oil.

Notably, after this cut, India has the second lowest tariffs from the US in Asia, after only Japan. India also fared overall better compared to BRICS counterparts, netting a lower rate compared to other banner names — Brazil (50%), China (37%) and South Africa (30%).

Also, when compared to its immediate neighbours (Bangladesh 20%, Pakistan 19%), China has significantly higher rates compared to India.

Here's who has lower tariffs compared to India: European Union, Japan, and Switzerland: 15% US tariffs, while the United Kingdom: 10% rate.

Countries with comparable rates in South and Southeast Asia: Vietnam and Bangladesh (20%), and Pakistan, Malaysia, Cambodia and Thailand (19%).

Further, countries with tariffs higher than India: Brazil (50%), China (37%), Laos and Myanmar (40%), South Africa (30%), South Korea (25%).