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United States removes additional tariffs on imports from India, reaches framework for interim trade agreement

The United States is eliminating a 25% tariff on Indian imports and both countries agreed to a framework for an interim trade deal.

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february 9, 2026

President Trump on February 6, 2026, signed an executive order eliminating the additional ad valorem rate of duty of 25% on imports of articles from India, effective February 7, 2026, following India's commitment to cease importing Russian oil and to expand defense cooperation with the United States.

The United States and India on February 6, 2026, issued a joint statement announcing a framework for an interim agreement to advance reciprocal and mutually beneficial trade.

  • India will eliminate or reduce tariffs on all U.S. industrial goods and a broad range of U.S. food and agricultural products.
  • The United States will apply an 18% reciprocal tariff on select Indian goods, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery,
  • The United States will remove tariffs on certain products—including generic pharmaceuticals, gems, diamonds, and aircraft parts—subject to the successful conclusion of the interim agreement.
  • The United States will also remove tariffs on Indian aircraft and aircraft parts, while India will receive preferential tariff rate quotas for automotive parts and negotiated outcomes for pharmaceuticals, contingent on U.S. national security reviews.
  • Both countries commit to establishing rules of origin, addressing non-tariff barriers, and modifying commitments in response to tariff changes.

The framework will be implemented as both sides work toward finalizing the Interim agreement and a comprehensive bilateral trade agreement. Read a White House fact sheet (February 9, 2026)

For more information, contact a professional with KPMG Trade & Customs services:

 

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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