White House details India-United States interim trade agreement
The White House announced a framework for an interim trade agreement with India on February 6, 2026, following talks between President Donald J. Trump and Prime Minister Narendra Modi. This deal addresses tariff imbalances, removes punitive levies related to India’s Russian oil purchases, and sets the stage for a broader Bilateral Trade Agreement (BTA).
India will eliminate or reduce tariffs on all U.S. industrial goods and various food/agricultural products, such as dried distillers’ grains, red sorghum, tree nuts, fruits, soybean oil, wine, and spirits.
The U.S. will lower its reciprocal tariff on Indian goods from 25% to 18%, covering textiles, apparel, leather, plastics, chemicals, and machinery, while removing tariffs on select items like generic pharmaceuticals, gems, diamonds, and aircraft parts upon finalization.
An additional 25% U.S. tariff on India, imposed over Russian oil imports, has been lifted via executive order.
India commits to easing barriers on U.S. medical devices, ICT goods import licensing, and standards/testing for exports in key sectors within six months. Both nations will negotiate rules of origin, digital trade rules, and address other non-tariff issues like food/agricultural access.
India intends to purchase $500 billion in U.S. goods over five years, including energy, aircraft parts, precious metals, tech products like GPUs, and coking coal. The framework strengthens supply chain resilience, investment screening, and export controls against third-country non-market policies, with BTA talks continuing on services, IP, and more.
