White House Shares Joint Statement on India–US Interim Trade Pact, Here’s What the Deal Includes

The United States and India have introduced a framework for an interim trade agreement, signalling fresh momentum in economic cooperation between the two countries.

The joint statement, released by the White House on Friday (February 6, 2026), underscores their commitment to advancing negotiations for a broader bilateral trade deal launched by US President Donald Trump and Prime Minister Narendra Modi on February 13, 2025.

"The United States and India will promptly implement this framework and work towards finalizing the Interim Agreement with a view to concluding a mutually beneficial Bilateral Trade Agreement (BTA)," the two countries said in a joint statement, describing the framework as a step towards stronger trade ties.

Key Details of the India-US Interim Trade Pact

• The United States will reduce tariffs on Indian goods from 50% to 18%.
• India has agreed to stop buying Russian oil and ease selected trade barriers.
• Both countries are aiming to sign a formal trade agreement by March.
• Tariffs will fall to zero on products such as generic medicines, gems and diamonds, and aircraft parts.
• India has secured exemptions and special tariff limits for auto parts.
• Sensitive agricultural and dairy sectors remain protected to safeguard farmers and rural livelihoods.
• The US removed the additional 25% duty on Indian imports, but warned tariffs could return if India resumes Russian oil purchases.
• India plans to purchase $500 billion worth of US energy products, aircraft, precious metals, technology goods and coking coal over the next five years.
• India will reduce or eliminate tariffs on US industrial goods and several agricultural items, including nuts, fruits, soybean oil, wine and spirits.
• Both nations will work to cut non-tariff barriers, improve regulations, establish rules of origin and expand market access.
• Talks on generic medicines will continue, subject to US investigations.
• The agreement is positioned as a step toward a broader Bilateral Trade Agreement (BTA) aimed at reciprocal and balanced trade.

Tariff Cuts Expected to Expand Market Access

The interim framework follows President Trump's announcement earlier this week that Washington would sharply cut tariffs on Indian exports. In return, New Delhi agreed to reduce duties on a range of American goods after the formal deal is signed.

Indian Commerce Minister Piyush Goyal said both sides are targeting March for the agreement and emphasised the benefits for domestic industries.

Reacting on X, Goyal said the interim trade framework would "significantly expand market access for Indian exporters, especially MSMEs, farmers and fishermen," adding that access to the nearly $30 trillion US market and lower tariffs would create new opportunities in sectors such as textiles, leather, chemicals and machinery.

"At the same time, sensitive agricultural and dairy products have been fully protected to safeguard farmers' interests and rural livelihoods," Goyal said, adding that the framework reflects a shared commitment to stronger economic cooperation and sustainable growth.

Oil Conditions and Executive Order Signal Strategic Shift

Trump announced the agreement after a phone call with Prime Minister Modi, stating that India would begin purchasing oil from the United States and potentially Venezuela.

On Friday, the US President also signed an executive order removing a 25% duty that had been imposed on Indian imports due to India's earlier purchase of Russian oil. However, the order noted that India's oil imports would be closely monitored and warned that the additional tariff could be reinstated if Russian purchases resume.

Washington Calls Framework a 'Historic Milestone'

US Trade Representative Ambassador Greer described the interim pact as an important step towards improving access for American goods while strengthening economic ties.

"President Trump's dealmaking is unlocking one of the largest economies in the world for American workers and producers, lowering tariffs for all U.S. industrial goods and a wide array of agricultural products," Greer said.

"Today's announcement demonstrates the deepening ties between the United States and India as we create new opportunities for farmers and entrepreneurs in both countries. I thank Indian Minister of Commerce and Industry Piyush Goyal for his leadership and commitment to achieve fair and balanced trade with the United States."

In a detailed statement, the White House said the framework "reaffirms the countries' commitment to the broader US-India Bilateral Trade Agreement negotiations" launched in February and labelled the deal a "historic milestone".

"The Interim Agreement will represent a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes," the statement said.

Reaffirming their intent, both nations said they would "promptly implement this framework" while continuing efforts to finalise the interim pact and move ahead with the wider bilateral trade agreement.