U.S. and India Reach Framework for Interim Trade Agreement (Updated)

Published Feb. 9, 2026 | Updated Feb. 10, 2026

Key Points

• The U.S. and India have agreed on a framework for an Interim Agreement supporting reciprocal and balanced trade.
• India will reduce or eliminate tariffs on U.S. industrial goods, food, and agricultural products.
• The U.S. will apply an 18% reciprocal tariff on select Indian goods, with potential removal for certain products under the Interim Agreement.
• The agreement addresses non-tariff barriers, including medical devices, ICT goods, and food exports.
• India plans to purchase $500 billion in U.S. energy, aircraft, technology, and other products over the next five years.
• Latest Updates: A Fact Sheet issued on Feb. 9, 2026, outlines the deal and confirms the removal of the 25% additional duty on Indian exports related to Russian oil purchases. CBP guidance provides instructions for correcting previously filed entrie.

O​​​​​​n February 6, 2026, the U.S. and India announced a framework for an Interim Agreement to strengthen bilateral trade and support the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations. The framework outlines tariff reductions, including India lowering duties on U.S. industrial and agricultural products and the U.S. applying an 18% reciprocal tariff on select Indian goods. It also addresses non-tariff barriers, market access, rules of origin, supply chain resilience, technology trade, and digital trade, while supporting India’s commitment to purchase $500 billion in U.S. products over the next five years.

Latest Updates: On Feb. 9, 2026, the White House issued a fact sheet confirming the removal of the additional 25% tariff on imports from India tied to Russian oil. A CBP guidance posted on the same day provides updated instructions for implementing the removal of the additional 25% tariff. See below for complete details.

Tariff Adjustments

India will:

• Reduce or eliminate tariffs on U.S. industrial goods, food, and agricultural products such as DDGs, sorghum, tree nuts, fresh and processed fruit, soybean oil, wine, and spirits.

The U.S. will:

• Applies an 18% reciprocal tariff on select Indian goods, including textiles, leather, plastics, machinery, and artisanal products.
• Removes tariffs on certain Indian aircraft and parts, generic pharmaceuticals, gems, diamonds, and other products subject to the successful completion of the Interim Agreement.

CBP Guidance: Removal of Additional 25% Duties

According to the latest CBP guidance, products from India entered for consumption on or after 12:01 a.m. ET on February 7, 2026, are no longer subject to the additional 25% duties, and HTSUS headings 9903.01.84–9903.01.89 are no longer in use.

Importers who filed entries under these headings must correct them as needed. For unliquidated entries with duties already paid, a post summary correction (PSC) can request a refund, which will be issued upon approval at liquidation. For liquidated entries, importers may file a protest within 180 days.

Additional Commitments

Non-Tariff Measures

• India will address long-standing barriers affecting U.S. medical devices, ICT goods, and food products.
• Both countries will align standards and conformity assessment procedures to simplify compliance.
• Changes to tariffs by either country will allow reciprocal adjustments.

Market Access and Investment

• Preferential market access will be provided in sectors of mutual interest.
• Rules of origin will ensure benefits primarily accrue to the United States and India.
• Cooperation on inbound and outbound investment reviews, export controls, and technology trade will be strengthened.

Technology and Digital Trade

• Expanded trade in GPUs, data center goods, and other technology products.
• Joint technology cooperation initiatives will be enhanced.
• Both countries will develop a clear pathway for digital trade rules as part of the BTA.

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By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

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