White House Announces U.S. - India Historic Trade Deal
Los Angeles/Feb 12, 2026
NRIpress.club/Ramesh/ A.Gary Singh
On Feb 06, 2026, US President Trump announced a trade deal between the US and India that will open up India’s market of over 1.4 billion people to American products. , in a Joint Statement.
The Feb 06, 2026 Joint Statement follows a call between President Trump and Indian Prime Minister Narendra Modi last week, in which the leaders reached a framework for an Interim Agreement on reciprocal trade and reaffirmed their commitment to broader U.S.-India Bilateral Trade Agreement (BTA) negotiations.
President Trump agreed to remove the additional 25% tariff on imports from India in recognition of India’s commitment to stop purchasing Russian Federation oil. Accordingly, the President signed an Executive Order last Friday removing that additional 25% tariff.
Major Provisions of the Agreement
- Under the terms of the framework, India will eliminate or lower duties on a broad range of U.S. industrial products and several agricultural exports. These include dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine, spirits, and other commodities.
- India has also expressed its intention to significantly increase purchases of American goods, including more than $500 billion worth of U.S. energy, coal, information and communication technology products, and other items.
- Both countries will work to address non-tariff obstacles affecting priority trade sectors and establish rules of origin to ensure that trade benefits primarily support U.S. and Indian industries.
- In addition, India has agreed to negotiate strong bilateral digital trade rules aimed at removing discriminatory or burdensome regulations that restrict digital commerce. The two nations will also deepen cooperation on economic security, supply chain resilience, innovation, and coordinated investment and export control measures.
- Technology trade is expected to grow substantially, with expanded collaboration in advanced and strategic sectors.
President Trump said:
- The agreement represents continued efforts to expand opportunities for American exporters while reducing both tariff and non-tariff trade barriers that affect U.S. economic and national security interests.
- India has historically maintained some of the highest tariff rates among major economies, including average agricultural tariffs of around 37% and duties exceeding 100% on certain automobiles. The country has also implemented strict non-tariff measures that have limited various U.S. exports.
- In the coming weeks, both governments will move quickly to implement the agreed framework and finalize the Interim Agreement, with the broader goal of concluding a mutually beneficial Bilateral Trade Agreement. Future negotiations will address remaining tariffs, non-tariff restrictions, technical trade standards, customs procedures, regulatory practices, trade remedies, services, investment rules, intellectual property rights, labor and environmental standards, government procurement, and unfair practices linked to state-owned enterprises.
The announcement reflects President Trump’s broader strategy of confronting what he has described as unfair global trade practices. On April 2, 2025, he declared a national emergency citing the persistent U.S. trade deficit and a lack of reciprocity in key trading relationships.
The administration maintains that reducing trade barriers and improving market access — particularly for American agricultural producers — is central to creating a more balanced trading system.
Officials described the new framework with India as a meaningful step toward achieving reciprocal and fair trade relations between the two countries, strengthening one of America’s most significant economic partnerships.
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