India-US Trade Framework
From Reciprocal Tariffs to Interim Agreement
On February 6, 2026, the US and India announced a framework for an Interim Agreement on reciprocal and mutually beneficial trade. Under this framework, the US agreed to reduce the reciprocal tariff on Indian goods from 25% (which included a 25% base reciprocal tariff plus an additional 25% tariff linked to India's Russian oil purchases) to 18%. India, in turn, committed to eliminate or reduce tariffs on all US industrial goods and a wide range of US agricultural and food products. The framework also includes rules of origin provisions to ensure that the agreed benefits accrue predominantly to products originating in the US and India, preventing third-country free-riding.
- US reciprocal tariff on India reduced from 50% (cumulative) to 18%
- India committed to purchasing over $500 billion of US energy, ICT, agricultural, coal, and other products over 5 years
- India agreed to remove digital services taxes and negotiate bilateral digital trade rules
- Framework launched following a February 13, 2025 agreement between President Trump and PM Modi for broader BTA negotiations
- India-US bilateral trade in FY25 stood at a record $132.2 billion (India's exports: $86.51 billion; trade surplus: $40.82 billion)
● Tracked since February 10, 2026 · last seen February 20, 2026 · updates as the daily brief publishes