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 from next week.
In an interview with CNBC-TV18, Goyal explained that the new tariff regime will begin once the White House signs the executive order. He added that United States Trade Representative (USTR) Jamieson Greer is likely to visit India in March to sign a legal document formalizing the deal.
Goyal’s remarks came after the two nations unveiled a framework for an interim trade deal on February 7. The India-US trade agreement aims to remove trade barriers, reduce tariffs and open market access for both sides. The interim agreement aims to provide immediate relief to exporters through tariff reductions, the government said.
Reinstatement of tariff to improve US market access for Indian goods: Goyal
The Commerce Secretary confirmed that the tariff reset would significantly improve US market access for Indian goods and nearly 50% of India’s exports to Washington would attract zero duty under the new deal.
Another 10-15% of India’s exports to the US, including steel and aluminium, will continue to be subject to sectoral duties under US Section 232 and will continue to face a duty of up to 50%. Nearly 35% of the remaining exports will be subject to a duty of around 18%, Goyal added.
Inventory issues for non-deal e-commerce firms: Goyal
Goyal also added that matters related to supplies for e-commerce companies were not part of the trade talks between the two nations. He further said that while New Delhi and Washington held discussions on trade concessions in the agreement, the inventory of e-commerce firms was not included, suggesting that India’s existing framework for the sector remains unchanged.
Will the US monitor Russian oil imports from India?
According to Goyal, the issue of importing Russian oil was not part of the trade agreement, which is due to enter into force in the coming days. He clarified that Washington had earlier said it would monitor India’s future oil imports from Russia, but the matter was being handled by the Ministry of External Affairs under S Jaishankar.
India-US trade agreement
On February 2, US President Donald Trump announced a trade deal with India that cuts the tariff by 18%. Trump announced the Truth Social deal after a call with Indian Prime Minister Narendra Modi. In a post on Truth Social, he said India would stop buying oil from Russia and instead buy oil from the US and possibly Venezuela.
In addition to India agreeing to buy more than $500 billion worth of US goods, including energy, coal, technology and other products, Trump said Modi also pledged that India would “BUY AMERICAN at a much higher level”.
According to Reuters, a White House official confirmed that Washington has lifted additional 25% tariffs imposed on all imports from India to buy Russian oil.
Indian markets have been rattled since August 2025, when the Trump administration announced 50% tariffs on New Delhi, including a 25% punitive duty on continued purchases of Russian oil, making it one of the worst-performing emerging market markets in 2025, Reuters reported.
“This deal unlocks unprecedented opportunities for farmers, SMEs, 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 acquire technology from the US,” Goyal said in a post on X.
