Overview
- Washington’s executive order rescinds the extra 25% levy on Indian goods effective Feb. 7 and notes expanded 10‑year defense cooperation, with monitoring that could restore duties if conditions lapse.
- India will eliminate or reduce tariffs on all U.S. industrial products and a wide range of farm and food items, while Indian officials say sensitive agricultural and dairy lines remain protected.
- The U.S. sets an 18% reciprocal tariff on most Indian-origin imports, with potential zero tariffs later for items such as generic pharmaceuticals, gems and diamonds, and aircraft parts once the interim agreement is finalized.
- National-security tariffs will be withdrawn on certain Indian aircraft and components, India will receive a tariff‑rate quota for auto parts, and outcomes on pharmaceuticals remain tied to ongoing U.S. investigations.
- Both sides commit to tackling non‑tariff barriers, pursuing acceptance of U.S. or international standards within six months, enforcing rules of origin, coordinating on supply chains and export controls, and advancing digital trade talks under a path to a broader BTA targeted for legal action by mid‑March.