U.S. – India Framework to Reduce Tariffs in the Works
8 February 2026 02 MINS. Read USA
On February 6, 2026, the White House released a joint statement from the U.S. and India outlining a framework for an Interim Agreement on reciprocal and mutually beneficial trade. Key terms include India and the U.S. removing tariffs on certain goods originating in each other’s countries. Additional details will be released when the agreement is finalized.
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.
India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distiller’s grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
Imports from India
Reciprocal Tariff
The U.S. will apply a reciprocal tariff rate of 18% on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products and certain machinery, and, subject to the successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements), as amended, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
Aircraft & Aircraft Parts
The U.S. will remove tariffs on certain aircraft and aircraft parts of India:
Section 232 – Aluminum
Section 232 – Steel
Section 232 – Copper
Auto Parts
India will receive a preferential tariff rate quota for auto parts.
Pharmaceuticals and Ingredients
Contingent on the findings of the Section 232 investigation on pharmaceutical and pharmaceutical ingredients, India will receive negotiated outcomes with respect to generic pharmaceuticals and ingredients.
