New Delhi, Feb. 7 -- India and the United States, on 7 February 2026, jointly announced that both countries have reached an 'interim agreement' on the upcoming potential bilateral trade deal. This long-awaited interim agreement comes after an intense negotiation from both sides, which started back on 13 January 2026.

"The United States of America (United States) and India are pleased to announce that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement)," according to a joint statement released on Saturday.

Under the interim agreement, the United States will apply a reciprocal tariff rate of 18% on all Indian exports to the Western nation, while withdrawing the 25% ...