India’s Trade Minister announced that the United States is expected to issue a notification this month reducing import tariffs on Indian goods to 18%. The move follows the interim trade pact framework agreed earlier in February, signaling a reset in bilateral trade relations and boosting India’s export competitiveness.
India’s Trade Minister confirmed that the United States is likely to notify a tariff reduction to 18% on Indian imports within February 2026, marking a significant step in operationalizing the interim trade pact agreed between the two nations.
The tariff cut follows earlier reductions from 50% to 25%, and now to 18%, as part of a phased approach to ease trade tensions and expand market access. Officials noted that the notification will be published in the US Federal Register, requiring no fresh executive order, thereby expediting implementation.
The interim pact, announced on February 7, 2026, also includes provisions for scrapping tariffs entirely on certain items such as generic medicines, gems, diamonds, and aircraft components, opening new opportunities for Indian exporters.
Analysts believe the tariff reduction will strengthen India’s position in the US market, particularly in textiles, engineering goods, and agricultural products, while reinforcing bilateral cooperation in supply chain resilience and investment flows.
Key Highlights
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Tariff Reduction: US to cut import tariffs on Indian goods to 18%.
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Timeline: Notification expected by February 2026.
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Previous Cuts: Tariffs reduced from 50% → 25% → 18%.
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Implementation: Update to US Federal Register, no new executive order needed.
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Sectoral Impact: Benefits for textiles, engineering, agriculture, gems, and medicines.
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Strategic Goal: Strengthen India–US trade ties and pave way for broader bilateral agreement.
Sources: ABP Live – India–US Trade Deal Update; The Hindu – Tariff Notification Timeline; India Today – Tariff Reduction Details and Sectoral Impact