The United States and India moved closer to a trade pact on Friday (February 6, 2026), releasing an interim framework that would ‍lower tariffs, reshape energy ties and deepen economic cooperation as both countries seek to ​realign global supply chains. Here are key points of the joint statement:India-U.S. trade deal LIVE updatesWhat was announcedUnited States and India agree on a ​framework for an interim reciprocal trade agreementFramework linked to broader U.S.-India Bilateral Trade Agreement (BTA) talks launched on Feb. 13, 2025Deal aims at reciprocal, balanced trade and supply chain resilienceIndia’s tariff actionsTo eliminate or reduce tariffs on all U.S. industrial goodsTo cut duties on a wide range of U.S. farm and food products, including DDGs (dried distillers’ grain) and red sorghum ​for feed, tree nuts and fruits, soybean oil, wine and spiritsTo provide preferential market access in agreed sectorsU.S. tariff actionsTo apply an 18% reciprocal tariff rate on Indian-origin goods under existing executive ordersTariffs initially cover sectors including textiles ​and apparel, leather and footwear, plastics ⁠and rubber, organic chemicals, home decor and artisanal goods, certain machineryTo remove reciprocal tariffs on a wide range of Indian goods after successful conclusion of the interim deal, including generic pharmaceuticals, gems and diamonds, aircraft partsStell, aluminium, and auto partsU.S. to remove certain Section 232 tariffs on ‌Indian aircraft and aircraft parts tied to steel, aluminium and copper measuresIndia to receive a preferential tariff-rate quota for ‍auto parts under U.S. national security tariff rulesPharmaceutical tariff outcomes subject to ongoing U.S. Section 232 probeNon-tariff barriersIndia to address long-standing barriers affecting U.S. medical devices, ‍ICT (Information and Communication Technology) goods import licensing, U.S. food and agricultural productsIndia to review acceptance of U.S. or international standards and testing rules within six months in identified sectorsBoth sides to discuss standards and conformity assessment proceduresRules and safeguardsBoth sides to set rules of origin to ensure benefits accrue mainly to U.S. and Indian producersEither side can modify commitments if the other changes agreed tariffsDigital tradeBoth countries commit to address discriminatory or burdensome digital ⁠trade practicesTo work toward digital trade rules under the full BTASupply chains and securityBoth sides to align on ​economic security and supply chain resilienceCooperation planned on investment reviews, export controls, non-market policies ⁠of third countriesIndia purchase commitmentsIndia intends to purchase $500 billion worth of U.S. goods over five years, including energy products, aircraft and parts, precious metals, technology products, coking coalBoth sides to expand technology trade, including Graphics Processing Units (GPUs) and data centre equipmentNext stepsFramework to ⁠be implemented promptlyCountries to finalise interim agreement while continuing negotiations toward a full bilateral trade agreement. trade deal: Tariffs cut, markets open

Source: The Hindu February 07, 2026 08:26 UTC