The India–United States trade deal of 2026 is what everyone is searching for. The full list of U.S. products with zero or reduced tariffs in India is now coming to light. Both the countries announced an interim agreement on a proposed Bilateral Trade Agreement (BTA) on 7 February 2026, following weeks of negotiations that began in mid-January.
Rumors related to this new deal with 18% tariff rule and changes were circulating in the media and the US, and the framework outlines reciprocal tariff adjustments aimed at boosting two-way trade between the two countries, especially focusing on zero tariffs and reduced duties for select imports.
According to a joint statement, the interim trade deal between US and India is designed to promote mutually beneficial trade relations while paving the way for a more comprehensive India-US trade agreement in the future. India is a huge market; this initial pact highlights significant tariff reductions on US goods entering India, marking a key step towards the finalization of a broader bilateral trade deal.
Tariff Changes on Indian Exports to the US
Under the interim arrangement, the United States will:
- Withdraw the additional 25% ad valorem duty imposed earlier on Indian goods
- Apply a uniform reciprocal tariff of 18% on Indian exports, which is a good for India as the tarrifs by US on India was high. This brings down the effective duty from nearly 50% to 18%. Previously US lowered import tariffs on food items.
The White House confirmed that the revised tariff structure applies to Indian goods entered for consumption in the US on or after 7 February 2026.
Tariff Concessions by India on US Imports
In return, India has agreed to offer zero tariffs or reduced tariff rates on select imports from the United States t, and expand purchases of American products. These concessions cover a wide range of sectors, including agriculture, healthcare, technology, and consumer goods.
List of US Goods Eligible for Zero or Reduced Tariffs in India
1. Agricultural and Food Products
- Dried distillers’ grains (DDGs)
- Red sorghum (animal feed)
- Tree nuts such as almonds, walnuts, and pistachios
- Lentils
- Barley, cereals, seeds, beans
- Vegetable planting materials, saplings, roots, taro, and bananas
Many of these items will attract zero or significantly reduced import duties.
2. Fresh and Processed Fruits
- Imports of fresh and processed fruits from the US will be subject to lower tariffs, with some items potentially receiving zero-duty access.
3. Soybean Oil
- Soybean oil imports will follow a quota-based system with reduced tariff rates, as confirmed by Commerce Minister of Indian government.
4. Alcohol (Wine and Spirits)
- Imported wine and spirits from the US will face lower customs duties compared to existing rates.
5. Medicines
- Select pharmaceuticals, including drugs used for cardiac care and cancer treatment, will be exempt from import duties.
6. Cosmetics
- Imported cosmetics from the US will be covered under a reduced tariff framework.
7. Chemicals
- Both organic and inorganic chemicals will see tariff reductions under the agreement.
8. Computer Products
- Components such as graphics processing units (GPUs) and other computer hardware parts will attract lower import duties.
9. Medical and Health Equipment
- Medical device components, selected equipment, and hearing aids will be imported at reduced tariff rates.
10. Additional Products
- The joint statement notes that more items may be added to the zero-tariff or reduced-tariff list as discussions progress.
The interim agreement is a stepping stone toward a full-fledged India–US Bilateral Trade Agreement that will boost economies of both the nation. The development is new but both sides have indicated that negotiations will continue to expand market access and finalise sector-specific commitments in the coming months.