India US Trade Deal: On Monday, February 2, US President Donald Trump had announced to reduce the 50 percent tariff on India to 18 percent. But he had not fixed a date for this. Now an executive order has been issued by the White House. According to which, the additional 25 percent tariff imposed on India has ended. This order has come into effect from 10:30 am today, Saturday, February 7, 2026, Indian time. That means now America will not charge additional 25 percent tariff on Indian products.
According to the order issued by the US on the trade deal, apart from the additional tariffs imposed on India, special codes and provisions related to India included in the official tariff list of the US have also been removed. America had imposed additional tariff on India under these rules. This tariff will affect only those products which will reach America for consumption or will be removed from the warehouse after 7:30 pm today, February 7, 2026.
The impact of tariff will be visible on India’s economic condition.
After the decision to reduce the tariffs on Indian products, the Indian economy will see a huge boost. Because now penalty tax will not be levied, only normal duty will have to be paid. Those Indian products whose consignments have already arrived or are on the way or in the warehouse. Tariff has been collected from them. They will also be refunded as per the process. Although not everyone will get the refund, some criteria have been kept for this, which will be followed. Only he will get the refund.
What did PM Modi say?
After the order issued by the White House regarding tariffs, Prime Minister Narendra Modi welcomed the India-US Interim Trade Framework. Thanking US President Donald Trump, the PM said, the framework of the interim trade agreement between India and America has been agreed upon. This framework will increase trust, partnership and mobility between the two countries. This agreement will open new opportunities for many sections, generate employment and accelerate global development.
