US, India reach framework deal to lower tariffs

Antone Gonsalves and Phil Neuffer

February 3, 2026 3 min read

In this article:

ALI=F

+0.26%

HG=F

+0.79%

_This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. _

The United States will lower reciprocal tariffs on goods from India after reaching a framework trade agreement with the country.

Levies on a slew of goods from India will be reduced to 18% under the pact, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery, per a Feb. 6 joint statement released by the White House.

The U.S. also agreed to remove tariffs for goods such as generic pharmaceuticals, gems, diamonds and aircraft parts once the agreement is formalized. The U.S. further said it would rescind tariffs currently in place for steel, aluminum and copper imports for certain aircraft and aircraft parts. Additionally, separate from the framework agreement, Trump signed an executive order on Feb. 6 removing a 25% tariff on India-based imports installed last year for the country’s purchasing of oil from Russia.

As part of the agreement, the U.S. also plans to establish a preferential tariff quota for auto parts and to conduct negotiations related to generic pharmaceuticals and ingredients with India following the conclusion of an ongoing Section 232 investigation into the sector. Such probes have previously been the basis for tariffs on goods such as steel and aluminum.

Meanwhile, India agreed to remove import licensing procedures for U.S. medical devices and consider acceptance of U.S. and international standards for certain imported goods. Under the agreement, India will provide a determination about standards within six months from when the agreement is formalized.

Along with trade measures, India also said it would buy $500 billion of U.S. energy products, aircraft and aircraft metals, technology products and coking coal in the next five years.

Although both countries “will promptly implement” the framework, according to the joint statement, there is no timeline for when the agreement will be finalized.

The joint statement confirms a pact President Donald Trump announced via social media earlier this week.

In a Feb. 2 Truth Social post, Trump said he would reduce country-specific tariffs for India-originating goods from 25% to 18% as part of the agreement.

Should a deal to lower tariffs between the U.S. and India be finalized, it would be strategically significant, according to Pete Mento, director of global trade advisory services at Baker Tilly.

“Many people watching tariffs have expected and waited for a shift downward for Indian imports,” Mento said in a LinkedIn post earlier this week.

Story Continues  

However, Mento cautioned that announcements are only the first step and “implementation is where it becomes real.”

“So, I’m cautiously optimistic — and professionally curious,” he said. “When the paperwork hits, the Federal Register moves, and both governments publish the mechanics, then we’ll know exactly what changed.”

The framework agreement with India is the latest in a string of tariff-related pacts between the U.S. and its trading partners in the last year. Spurred by the Trump administration’s reciprocal tariff policy, which placed new levies on numerous countries, the U.S. has negotiated framework trade deals with the European Union, Japan and South Korea, among many others.

However, uncertainty has begun to swirl around some of those pacts. For example, after Trump threatened in January to impose new tariffs on eight European countries that opposed his campaign to take over Greenland, the European Union suspended its tariff pact with the U.S. Trump has since walked back the threat and the E.U. has renewed efforts to implement the agreement.

Meanwhile, the U.S.’ framework agreement with South Korea is in hot water after Trump said he would hike duties on imports from the country due to its alleged failure to meet the terms of the deal.

_Editor’s note: This story has been updated to provide details from a joint statement and executive order published by the White House and to clarify the status of the U.S.’ framework trade agreement with the EU. _

**Recommended Reading **

Trump’s tariffs: Tracking the status of international trade actions

Terms and Privacy Policy

Privacy Dashboard

More Info