India and the United States, on 7 February 2026, jointly announced that both countries have reached an ‘interim agreement’ on the upcoming potential bilateral trade deal. This long-awaited interim agreement comes after an intense negotiation from both sides, which started back on 13 January 2026.
“The United States of America (United States) and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement),” according to a joint statement released on Saturday.
Under the interim agreement, the United States will apply a reciprocal tariff rate of 18% on all Indian exports to the Western nation, while withdrawing the 25% additional tariffs, bringing down the total duty to 18%, compared to the earlier 50% levels.
“Effective with respect to goods entered for consumption, or withdrawn from the warehouse for consumption, on or after 12.01 a.m. EST on 7 February 2026, products of India imported into the United States shall no longer be subject to the additional ad valorem rate of duty of 25% imposed pursuant to Executive Order 14329,” said the White House in an executive order.
In exchange, India is prepared to subject certain imports from the United States to ‘zero tariffs’ or a reduced rate of tariffs, as per the official announcement.
List of US goods that will attract ‘zero tariffs’ in India
1. US food and agricultural products: Like dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts like pistachio, walnut, almond, and lentils.
Vegetable planting material, vegetable sap, vegetable roots, taro, banana, beans, cereals, barley, and seeds are among the commodities which will attract zero tariffs or reduced tariff rates for imports into India.
2. Fresh and processed fruit: Fresh and processed fruits imported from the United States will be subject to a lower tariff rate or potentially even zero tariffs under the new trade deal.
3. Soybean oil: Union Minister Piyush Goyal said that soybean oil imports into India will be subject to a reduced tariff rate, where there will be a quota-based system for the same.
“There will be a quota-based system for soybean oil imports into India,” said Goyal during his media address on Saturday.
4. Alcohol (wine and spirits): Foreign liquor (wine and spirits) will attract a lower import tax rate in India, as part of the trade deal with America.
5. Medicines: Medicines like heart treatment or cancer treatment drugs will be subject to a zero-tariff structure as part of the upcoming trade deal with the United States.
6. Cosmetics: Foreign cosmetics will also be subject to a reduced tariff framework as part of the upcoming trade deal with the United States.
7. Chemicals: Union Commerce Minister Piyush Goyal, during his media address, also said that both organic and inorganic chemicals will be subject to lower tariffs due to the deal.
8. Computer products: Computer product components such as Graphics Processing Units (GPUs) imported from the United States will attract reduced import duties under the trade deal.
9. Health equipment: Medical health equipment, like medical device components, chosen equipment, and hearing aids, is among other things which will be subject to a reduced import tax under the trade deal.
10. Additional products: Along with mentioning all the other items under the interim agreement, India and the United States also wrote that there will be additional products which will be subject to zero tariff or reduced tariffs when imported from America.