WASHINGTON — The United States and India released a framework for an interim U.S.-India trade deal Friday that would cut U.S. tariffs on many Indian imports to 18% and set a $500 billion target for Indian purchases of American goods over five years. The move aims to cool a tariff dispute and speed talks toward a broader pact after President Donald Trump lifted an additional Russia-related tariff tied to India’s oil buying, Feb. 6, 2026.
The framework, published in a White House joint statement, is an early roadmap while negotiators try to lock in a wider Bilateral Trade Agreement.
The U.S. would apply an 18% “reciprocal” tariff rate, down from 25%, and the administration also rescinded a separate 25% penalty tariff that had pushed some duties to 50%, Reuters reported. Textiles, leather goods and footwear are among the sectors cited for the 18% rate, and U.S. officials warned the penalty tariff could be reinstated if India resumes Russian oil imports.
What the U.S.-India trade deal framework says
The U.S.-India trade deal framework pairs U.S. tariff relief with Indian market-opening steps, while leaving sensitive sectors — especially agriculture and dairy — for harder bargaining.
India’s $500 billion purchase pledge: India said it intends to buy $500 billion in U.S. goods over five years, including energy, aircraft and parts, and technology products.
Tariffs and rules: India said it will eliminate or reduce tariffs on all U.S. industrial goods and a broad basket of food and agricultural products, while both sides pledged work on standards, licensing and digital trade rules.
U.S. Trade Representative Jamieson Greer said Trump’s dealmaking is “unlocking one of the largest economies in the world,” in a statement from his office. The framework also points to rules of origin and cooperation on export controls as part of the broader talks.
Why the U.S.-India trade deal matters and what’s next
Indian Commerce Minister Piyush Goyal said the arrangement “completely” protects “sensitive agricultural and dairy products,” while India’s opposition Congress party criticized the framework as being tilted toward U.S. demands, the Associated Press reported.
Both governments said more negotiations are needed to finalize an interim agreement and then expand it into a broader deal, with officials signaling an ambition to complete the next phase as early as March.
The U.S.-India trade deal also sits on top of years of trade friction. In 2019, Trump ended preferential tariff treatment for India under the Generalized System of Preferences, a move New Delhi called “unfortunate”.
In 2023, the countries eased some pressure points when the U.S. Trade Representative said they agreed to terminate several World Trade Organization disputes and roll back retaliatory tariffs, including duties tied to steel and aluminum disputes.
Whether the U.S.-India trade deal becomes a durable, broader pact will hinge on implementation: how quickly India’s tariff cuts take effect, whether the promised purchases materialize, and whether Washington keeps the 18% rate in place or lowers it further.
