New York, Feb 3 (PTI) India has agreed to “reduce" tariffs on a variety of agricultural products, manufactured goods and chemicals, US Trade Representative Jamieson Greer said on Tuesday as he described the bilateral trade deal as an "exciting opportunity" for both countries.

“This is it. The time has come, and now we have the deal. We'll finish papering it, but we know the specifics. We know the details. It's a very exciting opportunity,” Greer said in an interview to CNBC Squawk Box.  He said that the US will continue to maintain some level of tariff against India - 18 per cent - “because we have this giant trade deficit with them, but they've also agreed to reduce their tariffs for us on a variety of agricultural products, manufactured goods, chemicals, medical devices etc. It's an exciting opportunity for both countries.” In a post on Truth Social, President Donald Trump, who spoke with Prime Minister Narendra Modi on Monday, announced that India and the US agreed to a trade deal under which Washington will charge a reduced reciprocal tariff on Delhi, lowering it from 25 per cent to 18 per cent.

Trump last year imposed 50 per cent tariffs on India, among the highest in the world, including 25 per cent levies for its purchases of Russian energy.

Following the trade agreement announcement, Modi said he was delighted that "Made in India products will now have a reduced tariff of 18 per cent".

He said it was wonderful to speak with his “dear friend" Trump.

"Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said.

The prime minister said when two large economies and the world's largest democracies work together, it benefits the people and "unlocks immense opportunities for mutually beneficial cooperation". PTI YAS GRS GRS GRS

India US trade deal reduces reciprocal tariffs to 18% and secures Indian tariff cuts on agricultural, manufactured and chemical goods. A bilateral trade arrangement sets a US reciprocal tariff of 18% on covered Indian imports while India agrees to reduce tariffs on agricultural products, manufactured goods, chemicals and medical devices; the deal retains a US tariff to address the trade imbalance and requires finalising implementing documentation and tariff schedules.