US and India reach interim trade framework with $500bn import pledge and tariff cuts

On February 7, Washington and New Delhi confirmed they had agreed on a framework for an interim trade deal that ends a months-long tariff dispute between Donald Trump's administration and Narendra Modi's government. Under the arrangement, Indian exports to the US will face an 18 per cent reciprocal tariff instead of the previous 50 per cent, while India says it intends to purchase $500bn in US energy, aircraft, metals, technology products, and coking coal over five years. India also committed to halt Russian oil imports and to broaden market access for US food and agricultural goods, while the two sides added digital trade to the scope of future talks.