US-India Trade Agreement: The United States Customs and Border Protection has announced the additional 25% tariff removal on Indian goods, effective February 7, 2026. This decision follows a historic trade agreement between India and the United States, announced by President Donald Trump and Prime Minister Narendra Modi.
According to a statement from the White House, the removal of these duties applies to Indian products that are either entering for consumption or being withdrawn from warehouses. The tariffs were initially imposed in August 2025 as a penalty for India’s purchase of Russian oil, but have now been lifted following India’s commitment to increase energy purchases from the US and Venezuela.
The agreement also includes a reduction of tariffs on Indian goods from 50% to 18%, while India is set to lower tariffs on American industrial, food, and agricultural products. The US is expected to cease reciprocal tariffs on Indian goods such as medicines, gemstones, and aircraft parts once the interim framework is fully implemented.
This development marks a significant shift in US-India trade relations, with both nations agreeing to expand defense cooperation over the next decade. The removal of tariffs is expected to enhance bilateral trade and open new opportunities for economic collaboration.
The United States Customs and Border Protection has announced the removal of an additional 25% tariff on Indian goods, effective February 7, 2026. This decision follows a historic trade agreement between India and the United States, announced by President Donald Trump and Prime Minister Narendra Modi.
According to a statement from the White House, the removal of these duties applies to Indian products that are either entering for consumption or being withdrawn from warehouses. The tariffs were initially imposed in August 2025 as a penalty for India’s purchase of Russian oil, but have now been lifted following India’s commitment to increase energy purchases from the US and Venezuela.
The agreement also includes a reduction of tariffs on Indian goods from 50% to 18%, while India is set to lower tariffs on American industrial, food, and agricultural products. The US is expected to cease reciprocal tariffs on Indian goods such as medicines, gemstones, and aircraft parts once the interim framework is fully implemented.
This development marks a significant shift in US-India trade relations, with both nations agreeing to expand defense cooperation over the next decade. The removal of tariffs is expected to enhance bilateral trade and open new opportunities for economic collaboration.
Published in SouthAsianDesk, February 11th, 2026
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