India-US Trade Ties Reset: Tariffs Slashed to 18% in Landmark Interim Deal
India-US Trade Ties Reset: Tariffs Slashed to 18% in Landmark Interim Deal By Rama Shankar Shukla | The News Streak February 9, 2026 NEW DELHI / WASHINGTON — In a move that signals a seismic shift in global trade dynamics, India and the United States have officially announced an Interim Trade Agreement (ITA). The deal, finalized over the weekend of February 7, 2026, effectively resets economic relations between the two giants, slashing effective tariffs on Indian goods from a staggering 50% down to 18%. The framework, announced in a joint statement following high-stakes negotiations between Prime Minister Narendra Modi and President Donald J. Trump, aims to propel bilateral trade toward a target of $500 billion by 2030. The Great Tariff Reset The most immediate impact of the deal is the significant reduction in costs for Indian exporters. Over the past year, Indian goods had been hit with a cumulative 50% tariff—consisting of a 25% "reciprocal" levy and an additional 25% pun...