The additional 25% tariff on Indian exports to the US has been withdrawn with immediate effect, and a revised tariff of 18% will come into force within 3–4 days after the US government issues the Executive Order, sources in the Ministry of Commerce said on Saturday.
A joint statement on the India–US trade agreement was released early Saturday, outlining the framework for an interim trade pact agreed on February 6, 2026. Both sides will now move to operationalise this framework and work towards finalising the interim agreement, which will form part of the broader Bilateral Trade Agreement (BTA).
“The additional tariff of 25% has been revoked with immediate effect. The 18% tariff will be implemented as soon as the Executive Order is issued. This is likely within the next 3–4 days,” a source familiar with the development said.
According to the Commerce Ministry, the agreement opens the possibility for India to target annual exports of up to $300 billion to the US.
As part of the understanding, India has agreed to ease restrictions on imports of US medical devices and eliminate import licensing requirements for US information and communication technology (ICT) goods. India will also, within six months of the agreement coming into force, decide whether to accept US or international standards, including testing requirements, for US exports in select sectors.
On the import side, India aims to source $500 billion worth of US goods over the next five years. These include energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal. The Commerce Ministry has earlier indicated that demand from data centres and Global Capability Centres (GCCs) in India is expected to be a key driver of this import growth.