In a joint statement on February 2, 2026, the US and Indian governments announced a deal that will see the US reduce its reciprocal tariff rate on India from 50% to 18%. 

In addition to the tariff rate drop, the US and India have agreed to several beneficial trade actions, including preferential market access in sectors of respective interest, addressing non-tariff barriers that affect bilateral trade, and economic security. 

Certain items, including aircraft parts, automotive parts, and potentially pharmaceuticals, will also receive preferential tariff rates under this agreement. 

The full details of the joint statement can be found here.