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India–US interim trade pact: What the joint statement says on tariffsThe US and India finalized a framework for an interim trade agreement, reducing tariffs and boosting market access, paving the way for a comprehensive US–India Bilateral Trade Agreement.By Anshul  February 7, 2026, 10:43:07 AM IST (Published)2 Min ReadThe United States (US) and India on Saturday (February 7) announced that they have finalised a framework for an interim trade agreement, marking a step toward a broader bilateral trade deal and a reduction in tariff barriers between the two countries.

According to a joint statement issued by the White House, the framework reaffirms US’s and India’s commitment to negotiations on a comprehensive US–India Bilateral Trade Agreement (BTA), which were launched by US President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.

The statement said the interim pact is intended to deepen economic cooperation, expand market access and strengthen resilient supply chains between the two nations.

Describing the deal as a “historic milestone,” the White House said the agreement reflects a shared commitment to reciprocal, balanced and mutually beneficial trade, backed by concrete policy outcomes.

What the framework provides

Under the key terms outlined in the joint statement:

India will eliminate or reduce tariffs on all US industrial goods.

India will also lower duties on a broad range of American agricultural and food products, including:

dried distillers’ grains

red sorghum for animal feed

tree nuts

fresh and processed fruits

soybean oil

wine and spirits, among other products.

In return, the US will apply a reciprocal tariff rate of 18% on Indian-origin goods. This will cover key export sectors such as:

textiles and apparel

leather and footwear

plastics and rubber products

organic chemicals

home décor and artisanal goods

certain categories of machinery.

Zero duties after signing

The statement clarified that subject to the successful conclusion and formal signing of the interim agreement, the US will remove tariffs entirely on a wide range of Indian goods, including:

generic pharmaceuticals

gems and diamonds

aircraft parts.

Officials indicated that this would enhance India’s export competitiveness once the legal agreement is in place.

Both sides signalled that the interim arrangement is a stepping stone toward a full-fledged BTA, which will cover additional market access commitments in the coming months.

-With agencies inputs

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