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India-US Trade Deal: Framework Announced, Lok Sabha Adjourned Over Tariff Debate
US and India announced a trade framework reducing US tariffs on Indian goods from 50% to 18%. Lok Sabha adjourned amid opposition demands for discussion on Trump's tariffs and deal.
Why It Matters
The deal de-escalates trade tensions, boosts Indian exports, and sets $500B US procurement target for India, impacting bilateral trade aiming for $500B by 2030.
Timeline
6 Events
Lok Sabha Adjourned Amid Standoff on Trade Deal Discussion
February 9, 2026
Lok Sabha adjourned due to government-opposition standoff over demand for discussion on Trump's tariffs and India-US trade deal.
Commerce Minister Goyal Confirms US Tariff Cuts Within Days
February 5, 2026
Commerce Minister Piyush Goyal states US to reduce tariffs on Indian exports from 50% to 18% within 4-5 days via executive order; formal agreement expected by mid-March 2026.
India-US Release Joint Statement on Interim Trade Framework
February 6, 2026
India and US issue joint statement on interim trade agreement framework; Trump signs executive order revoking 25% tariff on Indian goods; India to reduce tariffs on US imports post mid-March.
Trump Announces India-US Trade Framework Understanding
February 2, 2026
President Trump announces agreement on trade framework after call with PM Modi, reducing US reciprocal tariffs on Indian goods to 18% and scrapping 25% Russia oil penalty.
Modi-Trump Set $500B Trade Goal by 2030
February 13, 2025
PM Narendra Modi and President Donald Trump agree to double bilateral trade to $500 billion by 2030 and negotiate Bilateral Trade Agreement by fall 2025.
US Suspends 26% Reciprocal Tariff on Indian Goods
April 9, 2025
US suspends 26% reciprocal tariff on Indian goods for 90 days until July 9, 2025.