India Secures Concessions as U.S. Slashes ‘National-Security’ Tariffs; Agrees to Buy More U.S. Goods

India and the United States announced an interim trade framework easing U.S. “national-security” tariffs on metals, autos and other goods, with New Delhi agreeing to reduce duties on U.S. industrial and agricultural products — including soybean oil — and to purchase up to $500 billion in American exports over five years.

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Feb 7, 2026 - 10:23

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India Secures Concessions as U.S. Slashes ‘National-Security’ Tariffs; Agrees to Buy More U.S. Goods

India and the United States unveiled a framework for an interim trade agreement aimed at easing long-standing tariff tensions and deepening economic cooperation. Under the deal, Washington agreed to cut certain high tariffs on Indian imports — many of which were imposed on purported national-security grounds — and to apply a reduced 18 % reciprocal tariff on most Indian goods, down from significantly higher rates. Meanwhile, New Delhi committed to eliminate or lower tariffs on U.S. industrial goods and a broad basket of agricultural products, including dried distillers’ grains, red sorghum and soybean oil, along with tree nuts, fruits, wine and spirits.

As part of the agreement, India also pledged to buy approximately $500 billion worth of U.S. goods over five years — spanning energy products, aircraft and aircraft parts, technology, precious metals and more — in a move designed to rebalance trade and strengthen supply chains between the two economies. The interim framework sets the stage for a fuller Bilateral Trade Agreement (BTA) that would further reduce tariffs, expand market access, and address non-tariff barriers affecting sectors such as medical devices and information technology.

Officials from both countries described the pact as a significant step toward resolving trade quarrels and fostering long-term strategic economic ties, with ongoing negotiations expected to culminate in a formal agreement. Analysts say the deal could benefit exporters on both sides while reducing the specter of punitive tariffs tied to national-security trade measures.