The White House has announced a significant advancement in U.S.-India economic relations with a new trade framework aimed at establishing a comprehensive bilateral trade agreement.
The White House recently revealed a major development in the economic relationship between the United States and India, announcing a new framework that sets the stage for a broader, long-term bilateral trade deal. This announcement was made through an official joint statement released on February 6, 2026.
According to the joint statement, the United States and India have reached an agreement on an interim trade deal that brings both nations closer to a full bilateral trade agreement. U.S. officials have characterized this framework as a significant step toward strengthening economic ties between the two countries.
This new framework builds upon trade discussions initiated in February 2025 by former President Donald Trump and Indian Prime Minister Narendra Modi. The focus of these talks has been on establishing fair and balanced trade practices while enhancing supply chains.
As part of the agreement, India has committed to reducing or eliminating tariffs on nearly all U.S. industrial goods, as well as many American agricultural products. This includes items such as animal feed, nuts, fruits, soybean oil, and alcoholic beverages, thereby providing U.S. exporters with greater access to the Indian market.
In response, the United States plans to impose a reciprocal tariff of 18 percent on certain Indian goods in the short term. This tariff will cover a range of products, including apparel, footwear, chemicals, home décor, and some machinery.
Once the interim deal is finalized, the United States intends to lift tariffs on several key Indian exports. These exports include generic medicines, diamonds, aircraft parts, and specific high-value manufacturing goods. Additionally, the U.S. will roll back tariffs on Indian aircraft and aircraft parts that were previously imposed for national security reasons related to metals imports.
India is also set to receive preferential access for some auto parts exports to the United States, although this will be subject to national security regulations. Decisions regarding pharmaceutical tariffs will depend on the outcome of a separate U.S. investigation.
Both nations have agreed to provide each other with preferential access in sectors deemed strategic and important for long-term cooperation. The agreement includes provisions to ensure that trade benefits primarily accrue to the U.S. and India, rather than to third countries.
India has pledged to eliminate longstanding regulatory and licensing barriers that have restricted U.S. exports of medical devices, technology products, and agricultural goods. Furthermore, the two countries will collaborate to align standards and testing requirements in select industries, facilitating easier market access for companies in both nations.
Under the terms of the agreement, either country will have the flexibility to adjust its commitments if the other side alters agreed tariff levels. The interim deal is designed to pave the way for a more comprehensive trade agreement, with U.S. officials indicating they will consider India’s request for lower tariffs on Indian goods as negotiations progress.
In addition to trade, Washington and New Delhi are seeking closer cooperation on economic security matters, including supply chains, investment screening, and export controls, particularly in response to policies from third countries.
India has expressed its intention to purchase approximately $500 billion worth of U.S. energy, aircraft, technology products, precious metals, and coking coal over the next five years. Trade in advanced technology products, such as data center equipment and graphics processing units (GPUs), is expected to expand, alongside deeper U.S.-India collaboration in critical technologies.
Both governments have committed to working towards stronger digital trade rules and addressing practices that hinder cross-border digital commerce. They aim to implement the framework swiftly and finalize the interim agreement, keeping the objective of a comprehensive U.S.-India trade deal firmly in focus.
This announcement marks a pivotal moment in U.S.-India relations, with both nations poised to benefit from enhanced trade and economic cooperation.
According to The American Bazaar, the joint statement outlines a clear path forward for both countries in their economic partnership.