US Removes Contentious Map of Disputed Territories, Alters India Trade Deal Fact Sheet

Digital Desk

US Removes Contentious Map of Disputed Territories, Alters India Trade Deal Fact Sheet

The U.S. government on Thursday withdrew a social media post that depicted Pakistan-occupied Kashmir (PoK) and Aksai Chin as part of India, igniting diplomatic sensitivities just days after announcing a major trade agreement with New Delhi.

The map, circulated by the Office of the United States Trade Representative (USTR), had shown the entire Jammu and Kashmir region — including PoK and the Chinese-controlled Aksai Chin — as Indian territory. Its removal reflects concerns about its portrayal of internationally disputed borders.

At the same time, Washington has quietly revised key language in its fact sheet on the recently unveiled interim trade deal with India. Several phrases that appeared in the initial version have been either removed or softened, reflecting ongoing negotiations between the two capitals.

What Changed in the Trade Document?

The initial USTR fact sheet explicitly stated that India would reduce or eliminate tariffs on U.S. industrial and agricultural products, including pulses. In the updated version, references to pulses have been deleted, and the commitment to purchase $500 billion in U.S. goods has been rephrased from “committed to” to “intends to” — a subtle but notable shift in tone.

The revised fact sheet also limits its list of priority sectors to energy, information and communication technology, and coal, among other goods, while removing explicit language on broader agricultural tariffs.

On digital trade, the U.S. appears to have softened its stance. Earlier drafts suggested India would abolish its digital service tax; the new version states only that India is prepared to discuss rules governing digital trade with the U.S.

Oil Tariff Rollback and Refund Mechanism

In a significant development, the U.S. has also agreed to roll back a 25 percent tariff imposed on Indian imports of Russian oil. The tariff, initially levied as a penalty for continued imports amid sanctions regimes, will be rescinded, potentially delivering relief worth an estimated ₹40,000 crore to Indian businesses.

Under U.S. Customs and Border Protection law, refunds will be issued to U.S. importers for affected volumes imported between August 27, 2025, and February 6, 2026. Final refund amounts will depend on negotiations between U.S. importers and Indian exporters.

Monitoring and Compliance Mechanism

President Donald Trump has established a high-level task force comprising the U.S. Commerce, Foreign, and Treasury departments to monitor India’s compliance, particularly on oil imports from Russia. Should the panel determine that India has resumed significant Russian oil purchases, it could recommend reimposition of penalties.

Trade Deal Benefits and Future Prospects

Despite revisions, the interim agreement promises expanded market access for Indian sectors, including generic drugs, gems and diamonds, aircraft parts, textiles, and MSMEs. U.S. tariffs on certain Indian goods have been cut by up to 18 percent, and special tariff rate quotas have been negotiated for select auto components.

As both sides prepare for further negotiations, analysts say the evolving language underscores the complexity of aligning strategic and economic interests between two of the world’s largest democracies.

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