India and US Sign Interim Trade Deal Amid Farmer Protests
The Indian government negotiated an interim trade pact with the United States that reduces tariffs on industrial and agricultural goods, sparking protests from fruit growers in Kashmir.
The Government of India and the United States have established an interim trade agreement involving reciprocal tariff adjustments on industrial and agricultural goods. The pact removes 25% punitive tariffs from the U.S. and reduces reciprocal tariffs on Indian labor-intensive sectors, such as textiles and gems, to 18%. Commerce Secretary Rajesh Agrawal stated that sensitive sectors like wheat, rice, and poultry remain protected without duty concessions, and officials expect to finalize a formal legal agreement by March 2026.
Despite these protections, the deal has triggered economic alarm in Jammu and Kashmir and Himachal Pradesh. Chief Minister Omar Abdullah and horticulture stakeholders warn that duty-free imports of tree nuts and reduced tariffs on apples will devastate a regional economy that supports nearly 20 lakh people. Growers in the Kashmir Valley argue they cannot compete with subsidized American agribusinesses, leading to calls for shutdowns and protests.
Union Minister Piyush Goyal defended the agreement, clarifying that the government has not fully opened the market to U.S. apples. Instead, India has implemented a quota and raised the minimum import price (MIP) from Rs 60 to Rs 80 per kg to prevent dumping. While some producers believe the competition will force local quality improvements, others, including the Sopore Fruit Mandi leadership, maintain the deal will spell doom for domestic farmers lacking crop insurance and government backing.
