The United States will apply a reciprocal tariff rate of 18 per cent on Indian goods, the two sides announced in a joint statement on Saturday, outlining the framework for a trade deal. The statement also
said Washington will consider India’s request for a further reduction in levies.
The statement confirms that President Donald Trump has done away with the additional 25 per cent punitive tariffs, while cutting reciprocal tariffs to 18 per cent from 25 per cent. Soon after Trump and Prime Minister Narendra Modi announced the breakthrough in bilateral trade talks earlier this week, US Ambassador Sergio Gor told CNN-News18 that tariffs on India would be reduced to 18%.
According to the joint statement, the 18 per cent reciprocal tariff on Indian-origin goods will cover several sectors such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal goods, and certain machinery.
“The United States will apply a reciprocal tariff rate of 18 per cent under Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended, on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery,” the joint statement mentioned.
More Relief Possible For India In BTA Talks
Washington also plans to lift reciprocal tariffs on a broad range of products, including generic pharmaceuticals, gems and diamonds, and aircraft parts.
“…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,” it added.
The US will also scrap tariffs on certain Indian aircraft and aviation parts. In addition, India will be granted a “preferential tariff-rate quota” for automotive parts subject to US national security duties, while negotiated outcomes on generic pharmaceuticals and pharmaceutical ingredients will follow.
Trump Rolls Back 25% Tariff On India Over Russian Oil Imports
An executive order signed by the US President states that India has “committed to stop directly or indirectly importing Russian Federation oil,” news agency AFP reported. The document also notes commitments from New Delhi to buy US energy supplies and to pursue a long-term plan with Washington to “expand defence cooperation over the next 10 years.”
The additional 25 per cent duty will be removed at 12:01 a.m. Eastern Time on Saturday. Overall, the agreement represents a sharp scaling back of US tariffs on Indian exports, which had climbed to about 50 per cent late last year. It also helps resolve months of friction over India’s oil trade with Russia, which US officials say has helped bankroll a conflict they are seeking to end.
Piyush Goyal Hails India-US Interim Trade Framework
Union Commerce and Industry Minister Piyush Goyal hailed the newly announced India-US Interim Trade Framework, saying it would open access to a $30 trillion US market for Indian exporters.
Under the decisive leadership of PM @NarendraModi ji, India has reached a framework for an Interim Agreement with the US. This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen. The increase in exports will create lakhs of new job… pic.twitter.com/xYSjxML6kt
— Piyush Goyal (@PiyushGoyal) February 7, 2026
In a post on X, Goyal wrote, “Under the decisive leadership of PM Narendra Modi ji, India has reached a framework for an Interim Agreement with the US. This will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen. The increase in exports will create lakhs of new job opportunities for our women and youth.”
The Commerce Minister added that the agreement would strengthen bilateral economic ties and allow both countries to deepen cooperation.
“This agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses,” he added.
