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The United States and India announced a framework for an Interim Agreement on February 6, 2026, not a fully implemented preferential-trade deal. The announcement describes intended tariff concessions, an 18% US reciprocal tariff for specified Indian-origin categories, and work on rules of origin and non-tariff barriers. It does not publish final tariff-line schedules, product-specific origin tests, an effective date, or evidence that the instrument has entered into force.
That distinction matters for every importer and exporter. A company cannot establish a shipment’s preferential duty, quota access, or documentation requirements from the framework statement alone. Final legal text, customs instructions and any implementing notices must be checked before pricing, contracting or filing an entry.
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What the February 2026 announcement actually is
The White House described the February 6 announcement as a framework for an Interim Agreement while negotiations continue toward a broader Bilateral Trade Agreement (BTA). A February 9 White House fact sheet and an Indian Ministry of Commerce framework summary add detail, but neither converts the announcement into a complete customs schedule.
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The practical reading is therefore “policy direction, subject to legal implementation.” Businesses should treat every rate or concession below as conditional unless a later agreement text and customs notice says otherwise.
What each side said about tariffs
| Party | Announced treatment | What is still unknown |
|---|---|---|
| India | Eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products. Named examples include dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, plus additional products. | No line-by-line rates, staging calendar, quota quantities or effective date were published. “Eliminate or reduce” does not mean every listed product will have a zero tariff. |
| United States | Apply an 18% reciprocal tariff rate to originating Indian goods in named categories, including textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal products and certain machinery. | The announcement does not provide a complete tariff calculation for any particular Harmonized Tariff Schedule line. Ordinary customs duty, classification, exceptions and separate measures can still affect the amount due. |
| United States: other goods | Removal of the reciprocal tariff on a wide range of goods, including generic pharmaceuticals, gems and diamonds and aircraft parts, is tied to successful conclusion of the Interim Agreement. | “Subject to successful conclusion” is a condition, not an immediate exemption. Product coverage and implementation mechanics remain to be published. |
| Aircraft and aircraft parts | The statement separately discusses removing certain tariffs imposed under US national-security proclamations covering steel, aluminum and copper. | The exact tariff lines, legal authority, effective date and interaction with other duties are not supplied. |
| Automotive parts | A preferential tariff-rate quota is described for Indian automotive parts subject to a US national-security tariff. | Quota volume, allocation, application procedure, origin test and out-of-quota rate are not stated. |
| Pharmaceuticals and ingredients | Generic pharmaceuticals and ingredients are linked to findings from a US Section 232 investigation. | No final finding, product list or resulting duty treatment is established by the framework announcement. |
“Originating Indian goods” is important wording. The 18% figure is not a blanket promise for everything shipped from India; eligibility depends on the eventual origin rules and on the product’s tariff classification.
Why 18% is not an all-in import duty
A reciprocal tariff is only one component of a customs calculation. An importer normally starts with the product’s classification, customs value and ordinary duty rate. A separate reciprocal or national-security measure may then apply, subject to exclusions and legal instructions. Fees, quota treatment, antidumping or countervailing duties, and other trade remedies can also change the landed cost.
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For example, an Indian-made machine could fall within a named 18% category yet still require a classification decision, valuation support and an origin determination. If the same machine contains substantial third-country processing, the eventual rule might deny preference even though the final shipment departs from India. If a national-security tariff or trade-remedy order applies, that charge may be separate from the reciprocal rate.
Until implementing instructions exist, do not quote customers a single “India agreement duty.” Use a provisional model with separate fields for:
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- Harmonized tariff classification and statistical suffix;
- Customs value and valuation method;
- ordinary US or Indian duty;
- reciprocal tariff, if legally effective for the line;
- national-security, antidumping, countervailing or safeguard measures;
- quota status and any in-quota or out-of-quota rate; and
- brokerage, merchandise-processing, harbor-maintenance or other border charges.
The 18% rate should be treated as a policy signal until a final schedule identifies exactly which tariff lines receive it and how it interacts with existing law.
Rules of origin: the missing detail that decides eligibility
Rules of origin determine whether a product is legally Indian or US for agreement purposes. The two governments said they will establish rules so benefits accrue predominantly to the United States and India. The framework does not state the product-specific test, regional-value-content percentage, tariff-shift requirement, cumulation rule, certification form or verification process.
Why shipment origin is not enough
“Made in India” on a commercial label does not automatically satisfy a preferential-origin test. A product assembled in India from imported components might qualify under a substantial-transformation or tariff-shift rule, fail a minimum local-value test, or require a combination of both. The answer can differ by tariff line.
Records an origin program will likely need
Companies should be prepared to preserve bills of materials, supplier declarations, purchase records, production steps, costed manufacturing data, transport documents and classification analysis. Keep the records that prove where materials were sourced and what processing occurred, not merely the final shipping invoice.
Certification and verification questions to watch
- Who may certify origin: exporter, producer, importer or an approved authority?
- Will there be a prescribed certificate, a data set on the commercial invoice or an electronic filing?
- How long must records be kept?
- Can customs request supplier information or conduct a post-entry verification?
- Will materials from either country be cumulated, and are third-country inputs limited?
- What happens when a quota applies or a product has multiple possible classifications?
Do not create a certificate template or supplier warranty that assumes answers to these questions. Wait for the final agreement and implementing rules, then update contracts, enterprise-resource-planning fields and broker instructions.
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Non-tariff barriers are part of the deal
The framework is not limited to customs rates. India agreed to address barriers affecting US medical devices, remove restrictive information-and-communications-technology import licensing procedures or quantitative restrictions, consider acceptance of US-developed or international standards and testing in identified sectors within six months after entry into force, and address barriers affecting US food and agricultural products. The parties also intend to discuss standards and conformity assessment.
These are announced commitments, not evidence that a regulation has already changed. A six-month reference runs from the agreement’s entry into force, so it cannot be used to set a calendar until that date is known. Medical-device, technology and food exporters should continue meeting current Indian registration, labeling, testing and licensing requirements unless the responsible regulator publishes a replacement procedure.
How the framework fits the broader trade relationship
USTR estimated total US goods trade with India at $129.2 billion in 2024. The same 2025 terms-of-reference fact sheet reported a US goods trade deficit of $45.7 billion, up 5.1%—or $2.2 billion—from 2023. It also reported aggregate applied-tariff averages of 17% for India and 3.3% for the United States. Those are economy-wide averages, not negotiated 2026 rates and not a substitute for a tariff-line calculation.
The broader BTA agenda is intended to cover remaining tariff and non-tariff barriers, technical barriers, customs and trade facilitation, good regulatory practices, trade remedies, services and investment, intellectual property, labor, environment, government procurement and state-owned-enterprise practices. Progress in any of those areas does not itself change a customs entry until the relevant legal text takes effect.
USTR Ambassador Jamieson Greer said the announcement “demonstrates the deepening ties between the United States and India as we create new opportunities for farmers and entrepreneurs in both countries.” That is an official characterization of the announcement, not evidence that the anticipated economic effects have already occurred.
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When would tariff changes apply?
Three events must be separated:
- Political announcement: the February 6 framework sets out intended commitments.
- Legal conclusion: the governments must complete and sign the Interim Agreement, including schedules, origin rules and exceptions.
- Implementation: each side must publish the domestic legal instruments and customs instructions that make the commitments operative, with an effective date and any transition rule.
A shipment entered before the effective date generally cannot be assumed to receive a later preference, and a shipment after the date may still fail if its tariff line, origin or documentation does not satisfy the rules. Contract terms should therefore specify who bears duty changes and what happens if the agreement is delayed, amended or not concluded.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.A practical checklist for importers and exporters
1. Classify before estimating savings
Confirm the full tariff classification, including statistical suffixes. Do not rely on a broad product description such as “apparel,” “machinery” or “food.” Obtain a binding or advance classification decision where the relevant customs authority offers one.
2. Build a current-law baseline
Calculate what the shipment costs under today’s applicable tariff, trade remedies, quotas and fees. Keep this baseline separate from a scenario that assumes the framework is implemented.
3. Map the supply chain
List every input, its country of origin, processing step and cost share. Flag components from outside India or the United States. This map will make it easier to apply the eventual tariff-shift or value-content test.
4. Gather supplier evidence
Ask suppliers whether they can provide bills of materials, origin declarations and production records. Avoid promising preferential treatment to a buyer until the supplier’s evidence can be matched to the final origin rule.
5. Monitor primary notices
Check the White House, USTR, India’s Department of Commerce and the relevant customs authorities for the signed text, tariff schedules, quota notices, origin forms and effective-date instructions. A press release alone is not an entry instruction.
6. Update operational systems
After publication, update classification databases, landed-cost models, purchase orders, broker power-of-attorney instructions, certificates or invoice data, and record-retention procedures. Test a sample entry before changing every product master.
How to compare the final US and India treatment
Once legal documents are available, compare products or tariff lines rather than countries in the abstract. The following fields expose the differences that matter:
| Comparison field | Question to answer |
|---|---|
| Pre-agreement duty | What ordinary rate and additional measures applied immediately before implementation? |
| Post-agreement duty | Is the rate eliminated, reduced, staged, capped or subject to a quota? |
| Effective date | Which entry, shipment or assessment date controls? |
| Origin threshold | What tariff shift, regional value content or processing test must be met? |
| Calculation method | Which costs count toward value content, and in what currency or accounting period? |
| Cumulation | Can inputs from the partner country or approved third countries count? |
| Proof and verification | Who certifies, what data is required and how can customs verify it? |
| Quota or exception | Is access limited by quantity, product description, season, security measure or investigation? |
| Other duties | Do national-security, antidumping, countervailing or safeguard duties remain? |
The framework announcements do not provide reliable entries for these product-level fields. Filling them with assumptions could produce incorrect prices, origin claims or customs filings.
Common mistakes and how to avoid them
- Calling the framework a completed free-trade agreement: describe it as a framework for an Interim Agreement until the governments publish a final instrument.
- Turning “eliminate or reduce” into “zero duty”: use the exact conditional wording until India publishes its schedule.
- Applying 18% to every Indian shipment: limit the figure to the named originating categories and only after implementation.
- Ignoring ordinary duty and trade remedies: model every legally applicable charge separately.
- Assuming shipment location proves origin: analyze materials and processing under the product-specific rule.
- Changing compliance procedures after a press release: wait for customs forms, effective dates and regulatory notices.
- Using the 2024 trade statistics as a forecast: they describe the past relationship and aggregate averages, not the savings on a particular transaction.
What businesses can conclude now
The February 2026 framework signals an effort to lower selected barriers and establish preferential treatment between the United States and India. It does not yet answer the questions that determine a shipment’s duty: the exact tariff line, effective date, origin test, documentation, quota and interaction with other measures.
Businesses can prepare by classifying products, documenting supply chains, modeling current-law costs and monitoring official implementation notices. They should not claim a preference, rewrite a customer quotation or file an entry on the framework statement alone. The legally operative documents—not the announcement’s headline rates—will determine the result.
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