Explainer: US slashes tariffs on Indian imports
Starting February 6-7, 2026, the US is cutting tariffs on Indian products from a steep 50% down to 18%.
This interim trade deal, announced by President Trump and PM Modi, also foresees zero duties for things like generic medicines, gems, diamonds, and aircraft parts, subject to the successful conclusion of the interim agreement and, for pharmaceuticals, contingent on the findings of the US Section 232 investigation.
It's a major reset after months of costly trade barriers.
What does India get?
This deal isn't just about cheaper imports. India intends to purchase $500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over five years, while eliminating or reducing tariffs on US industrial goods and a wide range of US food and agricultural products—think tree nuts, soybean oil, wine.
Both countries are working out rules to make sure these benefits actually reach them. Plus, a bigger trade agreement is coming soon.
For young professionals and students eyeing global careers or affordable products, this could mean more opportunities—and maybe even lower prices ahead.