New Delhi, February 7 (ANI) — The United States and India announced a framework for an Interim Agreement on reciprocal and mutually beneficial trade, marking a significant advance in negotiations toward a broader US‑India Bilateral Trade Agreement (BTA) launched by President Donald J. Trump and Prime Minister Narendra Modi in February 2025, a joint White House and Commerce Ministry statement said.
According to the statement, the Interim Agreement is intended as a milestone demonstrating both countries’ commitment to balanced, reciprocal trade grounded in mutual interests and concrete outcomes.
In a separate announcement, the White House said it will eliminate the additional 25 percent tariffs previously imposed on certain Indian imports tied to purchases of Russian oil, and that India has agreed to stop importing Russian oil. The White House said: “India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defense cooperation over the next 10 years.”
The White House specified the tariff action: effective for goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Standard Time on February 7, 2026, products of India will no longer be subject to the additional ad valorem 25 percent duty imposed pursuant to Executive Order 14329. Headings 9903.01.84 through 9903.01.89 and subdivision (z) of U.S. Note 2 to subchapter III of chapter 99 of the Harmonized Tariff Schedule are terminated as of that time. The statement added that any refunds required by implementation will be processed under applicable law and standard U.S. Customs and Border Protection procedures.
The Kremlin responded by observing that India is free to buy oil from wherever it chooses. Kremlin spokesperson Dmitry Peskov noted that Russia is not India’s only supplier of oil and petroleum products, adding that India has historically purchased such products from a variety of countries.
Under the trade framework, India will eliminate or reduce tariffs on all U.S. industrial goods and on a wide range of U.S. food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among others.
The United States will, under the executive order referenced in the statement, apply a reciprocal tariff of 18 percent on Indian‑origin goods in sectors such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home decor, artisanal products, and certain machinery. The statement said that “subject to the successful conclusion of the Interim Agreement, the US will remove reciprocal tariffs on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts.”
The framework also provides for removal of U.S. tariffs on certain Indian aircraft and aircraft parts that had been imposed under national security‑related proclamations covering aluminum, steel and copper. India will receive a preferential tariff rate quota for automotive parts, consistent with U.S. national security requirements. Negotiated outcomes for generic pharmaceuticals and pharmaceutical ingredients are expected to depend in part on the findings of a U.S. Section 232 investigation.
Both countries committed to provide each other preferential market access in sectors of mutual interest on a sustained basis and to establish rules of origin to ensure that the benefits primarily accrue to the United States and India. The parties said they will promptly implement the framework and work toward finalizing the Interim Agreement, with the goal of concluding a comprehensive and mutually beneficial Bilateral Trade Agreement in line with an agreed roadmap.
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