The White House published a comprehensive fact sheet on February 10, 2026, detailing the specifics of an interim trade agreement reached between the United States and India. This document follows high-level discussions between President Donald Trump and Prime Minister Narendra Modi, marking a significant shift in the economic trajectory of the two nations. The fact sheet outlines a framework for reciprocal trade benefits and reiterates the commitment of both governments to pursue a more expansive bilateral trade agreement in the near future. The agreement focuses on reducing trade barriers and establishing a more balanced commercial relationship.
The background of this deal is rooted in years of negotiations aimed at addressing trade imbalances and tariff disputes, while historically, the US has raised concerns regarding high tariffs on American goods in the Indian market, while India has sought the removal of additional duties on its exports. This interim deal is presented as a strategic alignment of economic interests, while according to the White House, the framework established in this document will serve as the foundation for immediate implementation of trade concessions while negotiations for a final comprehensive deal continue.
Major Tariff Adjustments and Reciprocity
According to the fact sheet released by the White House, the United States has decided to remove the additional 25% tariff previously imposed on certain Indian products. This move is expected to provide significant relief to Indian exporters across various sectors. In a reciprocal gesture, the tariff applicable to India has been reduced from 25% to 18%. This adjustment is contingent upon specific policy commitments made by the Indian government. Trade analysts suggest that these reductions are designed to lower the cost of doing business and stimulate cross-border trade volumes between the two largest democracies.
Market Access for Agricultural and Industrial Goods
Under the terms of the agreement, India has committed to eliminating or Importantly reducing tariffs on a wide range of American industrial, agricultural, and food products. The White House noted that American exporters have long faced challenges due to high tariffs and stringent non-tariff barriers in India. The new agreement aims to provide better market access for US dairy, fruits, and other agricultural commodities, while Also, tariffs on industrial machinery and manufacturing components will be lowered, which is expected to benefit American manufacturers seeking to expand their footprint in the Indian market.
Energy and Technology Procurement Commitments
A key pillar of the interim deal is India's pledge to undertake large-scale purchases of US energy, information technology, coal, and other essential commodities, while the fact sheet specifies that India will increase its imports of Liquefied Natural Gas (LNG) and crude oil from the United States to bolster its energy security. On top of that, both nations have agreed to enhance cooperation in the IT sector, focusing on software services and digital infrastructure. According to trade experts, these procurement commitments are instrumental in addressing the trade deficit and fostering long-term strategic energy partnerships.
Digital Trade and Regulatory Frameworks
The agreement includes a commitment to address the Digital Service Tax and establish clear rules for digital trade. Both countries have agreed to work toward removing regulatory hurdles that impede the flow of digital services. The fact sheet also highlights cooperation in supply chain resilience, technology transfer, and investment security. A joint working group will be established to tackle non-tariff barriers and streamline customs procedures. Analysts believe that these measures are crucial for modernizing the trade relationship and ensuring that regulatory frameworks keep pace with technological advancements.
Analysis and Conclusion
According to trade analysts, this interim agreement represents a pragmatic approach to resolving long-standing economic friction. The reduction in tariffs and the opening of markets are expected to have a measurable impact on the trade balance. However, experts also note that the transition to a comprehensive bilateral trade agreement will require further negotiations on complex issues such as intellectual property rights and labor standards. The White House has indicated that technical teams will continue to work in the coming weeks to finalize the implementation details of this framework, which aims to solidify the US-India economic partnership.