Sat Feb 07 00:04:55 UTC 2026: # U.S. and India Reach Interim Trade Agreement, Trump Rescinds Tariffs on Indian Goods Tied to Russian Oil Imports
The Story:
On February 6, 2026, the White House released a Joint Statement announcing an interim trade agreement framework between the U.S. and India, building upon the broader bilateral trade deal initiated by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025. The agreement involves tariff reductions by both countries, with India lowering tariffs on U.S. industrial goods and agricultural products, while the U.S. will impose 18% reciprocal tariffs on Indian goods, down from 25%. Crucially, President Trump issued an executive order rescinding 25% additional tariffs imposed on India for purchasing Russian oil, contingent on India ceasing such imports and increasing purchases of U.S. energy products.
Key Points:
* The U.S. and India have agreed on a framework for an interim trade agreement.
* India will reduce or eliminate tariffs on U.S. industrial goods and a range of agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fruits, soybean oil, wine, and spirits.
* The U.S. will impose 18% reciprocal tariffs on Indian goods, a reduction from the previous 25%.
* President Trump rescinded additional 25% tariffs on India related to Russian oil imports, conditional on India halting these imports and buying more U.S. energy.
* The agreement includes a framework for expanded defense cooperation between the two countries over the next 10 years.
Key Takeaways:
- The U.S. is using trade agreements to incentivize India’s shift away from Russian energy and towards U.S. energy products.
- The interim trade agreement signifies a continued effort by both countries to strengthen their economic relationship.
- The agreement is contingent on India’s adherence to the terms regarding Russian oil imports, indicating a potential point of friction if India resumes those imports.
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