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The U.S. and India have reached an interim trade deal that would lower tariffs on both countries, a joint statement Friday revealed.

“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.

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. I thank Indian Minister of Commerce and Industry Goyal for his leadership and commitment to achieve fair and balanced trade with the United States.”

US, ARGENTINA STRIKE SWEEPING TRADE DEAL CUTTING TARIFFS, OPENING MARKETS TO US EXPORTS

President Donald Trump and Indian Prime Minister Narendra Modi shake hands before their meeting at Hyderabad House, Feb. 25, 2020, in New Delhi, India. (AP Photo/Alex Brandon, file) (AP Photo/Alex Brandon, file / AP Newsroom)

This comes after Trump said on Monday that the U.S. and India had agreed to the trade deal following 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” along with 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 décor, artisanal products, and certain machinery.”

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A billboard in Ahmedabad, India, in 2020 of President Trump, the first lady and Indian Prime Minister Narendra Modi.  (Reuters/Amit Dave / Reuters)

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 lowering trade barriers.

A general view of the Deendayal Port in Kandla, in the western state of Gujarat, India.  (Reuters/Amit Dave / Reuters)

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The agreement adds that “India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next 5 years.”

A formal trade agreement between the two countries is expected in March.