US-India Trade Deal Announced

The White House has announced a significant trade agreement between the United States and India, effective February 9, 2026. This deal involves the elimination or reduction of tariffs by India on a wide range of U.S. industrial and agricultural products, and India intends to purchase over $500 billion in U.S. energy, technology, and other goods. The U.S. will also lower its reciprocal tariff on India from 25% to 18% and remove an additional 25% tariff on imports from India, contingent on India ceasing purchases of Russian oil. The agreement also addresses non-tariff barriers, digital trade rules, and economic security alignment.

This agreement has substantial implications for importers and exporters, manufacturers, and energy companies involved in U.S.-India trade. Companies should review the specific product categories affected by tariff changes and India's commitment to increased purchases. While the agreement is announced, further negotiations are planned to finalize an Interim Agreement and a broader Bilateral Trade Agreement (BTA) covering areas like services, investment, and intellectual property. Companies should monitor these ongoing negotiations to understand the full scope of changes and potential future impacts on their operations.