Published: 1 February 2026White HouseInternational
India-US Announce Historic Trade Deal: US Lowers Reciprocal Tariff on India from 25% to 18%
On February 2, 2026, US President Donald Trump announced that the United States and India had reached a historic trade framework agreement. The US lowered its reciprocal tariff on Indian exports from 25% to 18% and agreed to remove the additional 25% tariff linked to India's Russian oil purchases. The deal was formalized through a joint statement released on February 6.
India committed to eliminating or reducing tariffs on US industrial goods, food, and agricultural products including dried distillers' grains, sorghum, tree nuts, fruits, soybean oil, and wines. India also signaled intent to purchase $500 billion in US energy products, aircraft, technology products, and coking coal over five years. However, analysts noted the 'devil in the details' as Indian officials did not confirm all of Trump's claims about the scope of commitments.
0Mains angle
Q: Discuss the key terms and uncertainties of the India-US trade framework announced by President Trump on 2 February 2026.
Answer (50 words):
On 2 February 2026 Trump announced an India-US trade framework, formalised 6 February. US cut its reciprocal tariff on Indian exports from 25% to 18% and removed 25% Russian-oil surcharge. India committed to $500 billion in US energy, aircraft, tech and coking coal over five years, while cutting industrial and agricultural tariffs.
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Linked questionMedium
What is the revised reciprocal tariff rate imposed by the US on Indian exports under the India-US trade deal announced in February 2026?
Explanation · Correct answer CThe US lowered its reciprocal tariff on Indian exports from 25% to 18% and also removed the additional 25% tariff linked to India's Russian oil purchases.
Frequently asked questions
What historic India-US trade deal was announced on February 2, 2026?
On **February 2, 2026**, **US President Donald Trump** announced that the United States and India had reached a **historic trade framework agreement**. The deal was formalized through a **joint statement on February 6, 2026**, covering tariff reductions, market access, and energy purchases.
By how much did the US reduce reciprocal tariffs on Indian exports under the 2026 India-US trade deal?
The US reduced its **reciprocal tariff on Indian exports from 25% to 18%** under the deal. Additionally, the US agreed to remove the **additional 25% tariff** that had been linked to India's purchases of **Russian oil**.
What did India commit to buying from the US in the India-US trade framework 2026?
India signaled intent to purchase **$500 billion in US products** over five years, including: **energy products, aircraft, technology products, and coking coal**. India also committed to eliminating or reducing tariffs on US industrial goods, food, and agricultural products like **soybean oil, tree nuts, fruits, and wines**.
What agricultural products did India agree to lower tariffs on under the India-US 2026 deal?
India agreed to reduce tariffs on US agricultural products including **dried distillers' grains, sorghum, tree nuts, fruits, soybean oil, and wines**. These commitments aim to significantly increase US agricultural exports to India's large consumer market.
What concerns did analysts raise about the scope of the India-US 2026 trade framework?
Analysts noted the **'devil in the details'** as Indian officials did not publicly confirm all of Trump's claims about the scope of India's commitments. Questions remained about the actual binding nature of India's pledges and the timeline for implementing the **tariff reductions and energy purchases**.
