US, India reach framework for interim trade agreement
India and the US just reached a framework for an interim agreement that's set to make trading a lot smoother.
Announced on February 7, 2026, the US will cut tariffs on Indian exports from a steep 50% down to 18%, thanks to an executive order.
In return, India's dropping or reducing tariffs on all US industrial goods and key farm products like grains, nuts, and fruits.
What does this mean for both countries?
For now, the US will keep an 18% tariff on Indian items like clothes, leather goods, plastics, and home decor—but those are subject to removal upon the successful conclusion of the Interim Agreement.
India will receive a preferential tariff rate quota for automotive parts into the United States and the United States will remove tariffs on certain Indian aircraft and aircraft parts.
India to purchase $500 billion worth of US goods
India has promised to buy $500 billion worth of US goods over five years—think energy supplies, planes, tech gear (hello GPUs!), and more.
The move is all about building stronger supply chains and could open doors for even bigger trade agreements soon.
If you're into global business or tech trends, this is one worth keeping an eye on!