The U.S. and India have reached an interim trade deal that would lower tariffs on both countries, a joint statement Friday revealed. According to a report from Fox Business, the statement said, “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.”

Read also: Trump Announces U.S.-India Trade Deal to Lower Reciprocal Tariffs

U.S. Trade Ambassador Jamieson Greer lauded President Donald Trump’s “dealmaking” for the agreement, saying it “is unlocking one of the largest economies in the world for American workers and producers, lowering tariffs for all U.S. industrial goods and a wide array of agricultural products.” He added that Friday’s announcement “demonstrates the deepening ties between the United States and India as we create new opportunities for farmers and entrepreneurs in both countries.” Greer thanked Indian Minister of Commerce and Industry Goyal for his leadership.

This comes after President Trump said Monday that the U.S. and India had agreed to the trade deal after his phone call with Indian Prime Minister Narendra Modi. Under the terms of the deal, India will “eliminate or reduce tariffs on all U.S. industrial goods” and other food and agricultural products like animal feed, tree nuts and fruit.

In return, the U.S. will apply a reciprocal tariff rate of 18% on goods from India, including “textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery.” At the successful conclusion of the interim agreement, the U.S. will also remove reciprocal tariffs on other products, “including generic pharmaceuticals, gems and diamonds, and aircraft parts,” according to the joint statement. The former 50% tariff on Indian goods was cut in exchange for India halting Russian oil purchases and reducing trade barriers.

Source: IndexBox Market Intelligence Platform