February 7, 2026
The United States and India moved closer to a major trade deal on Friday. They released an interim framework that aims to lower tariffs, reshape energy ties, and deepen economic cooperation. This step comes as both nations want to realign global supply chains. A joint statement said the framework reaffirms their commitment to negotiate a broader trade agreement. More talks are needed to finish the deal.
US President Donald Trump previously announced reducing US tariffs on Indian goods from 50% to 18%. This came after India agreed to stop buying Russian oil. Half of the 50% tariff was imposed by Trump to punish India for buying Russian oil, which he said supported Russia's war in Ukraine. Trump signed an order to remove this 25% tariff part after India agreed to buy more oil from the US and Venezuela.
However, India pushed back against opening its agriculture market broadly. Trade Minister Piyush Goyal said on X that the agreement protects farmers and rural livelihoods. Sensitive agricultural and dairy products like maize, wheat, rice, soya, poultry, milk, ethanol, tobacco, vegetables, and meat are fully protected. On the other side, India’s opposition Congress party claimed the deal favors the US and hurts Indian farmers and traders.
The joint statement gave new details. India will buy $500 billion worth of US goods in five years. These include oil, gas, coking coal, aircraft and parts, precious metals, and technology products like graphics processing units used in AI and data centers. India will cut or remove tariffs on many US industrial and food items, such as dried distillers’ grains, red sorghum, tree nuts, fruits, soybean oil, wine, and spirits.
The US will keep an 18% tariff on most Indian imports such as textiles, apparel, leather, footwear, plastics, chemicals, home decor, artisanal products, and some machinery. India will get tariff relief on some aircraft parts and a quota on auto parts at lower tariffs. Negotiations continue on generic pharmaceuticals, depending on a US tariff investigation.
Goyal called the agreement a gateway to the $30 trillion US market for Indian exporters, especially farmers, fishermen, and small businesses. He said they aim to sign a formal trade deal by March, after which India will cut tariffs on US exports.
India also agreed to address non-tariff import barriers on agriculture, medical devices, and communications gear. Both countries plan to accept US or international safety and licensing standards within six months. They also agreed to work together on enforcing export controls on sensitive tech and counteracting "non-market policies of third parties," a likely reference to China.
For years, the US and India struggled to agree on a full trade deal, facing disputes in agriculture, digital trade, and market access. But strategic concerns like competition with China and energy security have sped up talks.
This interim framework marks a key step towards stronger US-India trade ties and economic partnership.
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Us-india trade deal
Tariffs
Energy ties
Trade Framework
Piyush goyal
Donald trump
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