India and US Announce Framework for Trade Agreement to Lower Tariffs

On February 7, 2026, India and the United States announced a plan to work together on a temporary trade agreement. This agreement aims to lower the tariffs, or taxes, on some Indian goods when they are sold in the United States. The goal is to make Indian products cheaper and more competitive in the American market. Key highlights of the agreement include a reduction in tariffs from 25% to 18%. This means Indian goods will face less tax when sold in the United States. However, there is a condition: India needs to reduce its imports of Russian crude oil as part of this deal. The Chemicals and Allied Products Export Promotion Council, known as CAPEXIL, welcomed this interim agreement. They are a trade group that helps promote Indian chemicals and related products. The head of CAPEXIL’s Glass Panel Division, Pradeep Kheruka, said the tariff reduction will help boost exports of perfume bottles, a product made in India, to the United States. Mr. Kheruka also said that the lower tariffs will help increase exports across other sectors as well. This is because India will now face lower tariffs than some of its competitors. Reduced tariffs may make Indian goods more attractive to buyers in the United States. As of now, there is no official confirmation about whether the agreement has been finalized or if it will be put into action soon. Experts note that negotiations and procedural steps are still ongoing. The situation remains uncertain until official announcements are made. This potential deal is significant because lowering tariffs can help Indian businesses sell more products internationally. It can also create new opportunities for Indian companies to expand their markets and grow. Meanwhile, the United States is seeking to find a middle ground that benefits both sides. The agreement shows an effort by India and the United States to strengthen trade relations. It also reflects ongoing efforts to open markets, reduce trade barriers, and improve economic cooperation. Both countries aim to see benefits from this temporary arrangement, although final details and implementation dates are still to be confirmed. In summary, India and the United States announced a tentative plan to lower tariffs on Indian exports, which could help boost trade. Industry groups like CAPEXIL see this as a positive step for Indian exports. However, as of now, no official confirmation indicates that the agreement has been finalized or put into practice. Both countries continue to work on the details, and further updates are expected in the coming months.