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India-US trade deal: Commerce Minister Piyush Goyal recently said that the interim agreement between India and the US is likely to come into effect in the next week after White House signs an order. Announced by Donald Trump on 2 February, the deal slashes tariffs on Indian goods from 50% to 18%.
India-US trade deal: Commerce and Industry Minister Piyush Goyal on Monday said the recently announced 18% tariffs imposed by the US are likely to come into effect starting next week.
Speaking to CNBC-TV18, Goyal explained that the new tariff regime would begin once the White House signs an executive order. He added that United States Trade Representative (USTR) Jamieson Greer will likely visit India in March to sign a legal document formalising the deal.
Goyal's remarks came after the two nations unveiled a framework for an interim trade agreement on 7 February. The India-US trade agreement aims to bring down trade barriers, reduce tariffs, and open market access for both sides. The interim deal focuses on giving immediate relief to exporters through tariff reductions, the government said.
Tariff reset to improve US market access for Indian goods: Goyal
The Commerce Minister confirmed that the tariff reset would greatly improve the US market access for Indian goods, and nearly 50% of Indian exports to Washington will attract zero duty under the new deal.
Another 10-15% of India's exports to the US, including steel and aluminium, will remain subject to US Section 232 sectoral tariffs and continue to face duties of up to 50%. Nearly 35% of the remaining exports will be subject to around 18% tariffs, Goyal added.
Inventory-related issues for e-commerce firms not part of deal: Goyal
Goyal also added that the inventory-related issues for e-commerce companies were not part of the trade negotiations between the two nations. Elaborating further, he said that while New Delhi and Washington held discussions regarding trade concessions in the deal, e-commerce firms' inventory was not included, indicating that India's existing framework for the sector remains unchanged.
US to monitor India's Russian oil imports?
According to Goyal, the issue of Russian crude oil imports was not part of the trade deal that is to come into effect in the coming days. He clarified that Washington previously said it would monitor India's future oil imports from Russia, but the matter is being handled by the Ministry of External Affairs under S Jaishankar.
India-US trade deal
On 2 February, US President Donald Trump announced a trade deal with India, reducing the tariff 18%. Trump announced the deal on Truth Social, following a call with Indian Prime Minister Narendra Modi. In a post on Truth Social, he said that India would halt its purchase of crude oil from Russia and would instead buy oil from the US and possibly Venezuela.
In addition to India agreeing to buy over $500 billion worth of US goods, including energy, coal, technology, and other products, Trump said that Modi also committed that India will "BUY AMERICAN at a much higher level."
According to Reuters, a White House official confirmed that Washington had rescinded the additional 25% tariffs imposed on all imports from India for its purchase of Russian oil.
Since August 2025, when the Trump administration announced 50% tariffs on New Delhi, including a 25% punitive tariff for its continued purchase of Russian oil, the Indian markets had been battered, making it one of the worst-performing markets among emerging nations in 2025, Reuters reported.
"This agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world. It will help India get technology from the U.S.," Goyal said in a post on X.
English (US) ·