US-India trade talks: What is the interim agreement
India and the US just reached a framework for an Interim Agreement (announced Feb. 7, 2026).
The US is dropping its 25% penalty tariff on Indian imports, and said it did so in recognition of India's commitment to stop purchasing Russian oil.
Plus, tariffs on Indian goods heading to the US are coming down from 25% to 18%.
India agrees to purchase $500 billion of US products
India intends to purchase $500 billion of US products — including energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal — over the next five years.
The agreement also boosts trade in GPUs and data center gear, encourages joint tech projects, and removes some tariffs on aircraft parts from India.
India is cutting tariffs on American products
India is cutting or removing tariffs on a bunch of American products—think industrial goods and foods like nuts, fruit, wine, and spirits.
Both countries are making it easier for each other's businesses by opening up markets and setting rules that mainly help Indian and US producers.