3 months ago
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The United States and India moved person to a commercialized pact connected Friday (February 6, 2026), releasing an interim model that would lower tariffs, reshape vigor ties and deepen economical practice arsenic some countries question to realign planetary proviso chains.
Here are cardinal points of the associated statement:
What was announced
United States and India hold connected a framework for an interim reciprocal commercialized statement
Framework linked to broader U.S.-India Bilateral Trade Agreement (BTA) talks launched connected Feb. 13, 2025
Deal aims astatine reciprocal, balanced commercialized and proviso concatenation resilience
India’s tariff actions
To destruct oregon trim tariffs connected each U.S. concern goods
To chopped duties connected a wide scope of U.S. workplace and nutrient products, including DDGs (dried distillers’ grain) and reddish sorghum for feed, histrion nuts and fruits, soybean oil, vino and spirits
To supply preferential marketplace entree successful agreed sectors
U.S. tariff actions
To use an 18% reciprocal tariff complaint connected Indian-origin goods nether existing enforcement orders
Tariffs initially screen sectors including textiles and apparel, leather and footwear, plastics and rubber, integrated chemicals, location decor and artisanal goods, definite machinery
To region reciprocal tariffs connected a wide scope of Indian goods aft palmy decision of the interim deal, including generic pharmaceuticals, gems and diamonds, craft parts
Stell, aluminium, and car parts
U.S. to region definite Section 232 tariffs connected Indian craft and craft parts tied to steel, aluminium and copper measures
India to person a preferential tariff-rate quota for auto parts nether U.S. nationalist information tariff rules
Pharmaceutical tariff outcomes taxable to ongoing U.S. Section 232 probe
Non-tariff barriers
India to code long-standing barriers affecting U.S. aesculapian devices, ICT (Information and Communication Technology) goods import licensing, U.S. nutrient and cultivation products
India to reappraisal acceptance of U.S. oregon planetary standards and investigating rules wrong six months successful identified sectors
Both sides to sermon standards and conformity appraisal procedures
Rules and safeguards
Both sides to acceptable rules of root to guarantee benefits accrue chiefly to U.S. and Indian producers
Either broadside tin modify commitments if the different changes agreed tariffs
Digital trade
Both countries perpetrate to code discriminatory oregon burdensome integer trade practices
To enactment toward integer commercialized rules nether the afloat BTA
Supply chains and security
Both sides to align connected economic information and proviso concatenation resilience
Cooperation planned connected concern reviews, export controls, non-market policies of 3rd countries
India acquisition commitments
India intends to acquisition $500 cardinal worthy of U.S. goods implicit 5 years, including vigor products, craft and parts, precious metals, exertion products, coking ember
Both sides to grow exertion trade, including Graphics Processing Units (GPUs) and information centre equipment
Next steps
Framework to be implemented promptly
Countries to finalise interim statement portion continuing negotiations toward a afloat bilateral commercialized agreement.
