White House Issues Fact Sheet: A New Era of Reciprocal Trade Between the United States and India
On February 9, 2026, the White House released an official fact sheet outlining a historic trade agreement between President Donald J. Trump and Prime Minister Narendra Modi. This deal is designed to open India’s market of over 1.4 billion people to American products while addressing long-standing systemic trade imbalances.
Major Breakthroughs & Tariff Adjustments
The agreement follows a high-level call between the two leaders, resulting in immediate fiscal shifts:
• Removal of Oil-Related Tariffs: President Trump signed an Executive Order to remove an additional 25% tariff on Indian imports, recognizing India’s commitment to stop purchasing Russian oil.
• Lowered Reciprocal Tariffs: The United States will further lower the Reciprocal Tariff on India from 25% to 18%.
• Indian Market Access: India will eliminate or reduce tariffs on all U.S. industrial goods and a wide variety of agricultural products, including tree nuts, fresh fruit, wine, and spirits.
Strategic Economic Commitments
The deal establishes a massive procurement framework and updates digital trade standards:
• $500 Billion Purchase: India has committed to purchasing over $500 billion of U.S. energy, coal, agricultural products, and information technology.
• Ending Digital Services Taxes: India will remove its digital services taxes and work toward bilateral digital trade rules that prohibit customs duties on electronic transmissions.
• Supply Chain Resilience: Both nations will align to address non-market policies of third parties and cooperate on investment reviews and export controls.
The Path to a Final Agreement
This announcement serves as a framework for an Interim Agreement, with a view toward concluding a comprehensive Bilateral Trade Agreement (BTA):
• Ongoing Negotiations: Future talks will focus on remaining tariff barriers, intellectual property, labor, environment, and government procurement.
• Rules of Origin: Specific rules will be negotiated to ensure that the economic benefits of the deal stay predominantly within the U.S. and India.
• Technology Expansion: The deal paves the way for a significant increase in bilateral trade in technology products and joint cooperation.