India and U.S. Set to Sign Joint Trade Statement Within Days, Legal Pact Expected Mid‑March
Updated (3 articles)
Joint statement to be signed imminently, legal agreement slated for mid‑March Commerce Minister Piyush Goyal announced on Feb 5, 2026 that India and the United States will finalize a joint statement covering the first tranche of their Bilateral Trade Agreement within the next 4‑5 days, while a formal legal pact to enable India’s tariff cuts is targeted for mid‑March [1]. The statement will trigger U.S. tariff reductions immediately, but India must wait for the legal instrument to adjust its WTO‑mandated MFN rates [1].
U.S. tariffs cut to 18% via executive order; India’s cuts delayed until legal pact The United States will lower tariffs on Indian imports from 50% to 18% through a presidential executive order that takes effect as soon as the joint statement is signed [1]. India, however, can only reduce its MFN tariffs on U.S. goods after the mid‑March legal agreement, reflecting the WTO requirement that such changes be binding [1]. Earlier reports described the U.S. tariff level as 25% instead of 50%, indicating a discrepancy among sources about the pre‑deal rate [3].
Import targets underscore massive economic ambition Goyal projected that India will import roughly $500 billion of U.S. energy, data‑centre, ICT, and aerospace products over the next five years, citing current Boeing orders of $70‑80 billion that could exceed $100 billion with engines and spares [1]. Commerce Secretary Rajesh Agrawal added that India already purchases over $300 billion of critical goods worldwide and expects total imports to surpass $2 trillion within five years, with the U.S. share driving diversification [1].
Feb 3‑4 diplomatic meetings set broader agenda on minerals and Quad On Feb 3, 2026 External Affairs Minister S. Jaishankar met U.S. Secretary of State R. Rubio in Washington, reviewing trade, energy, defence, and critical‑minerals cooperation, and both praised the tariff‑cut deal [2]. The talks also formalised joint critical‑minerals exploration ahead of a U.S.‑hosted ministerial on Feb 4, and reaffirmed commitment to the Quad partnership [2]. Domestic reactions ranged from Prime Minister Modi’s celebration of “Made in India” benefits [3] to Congress leader Jairam Ramesh’s criticism of the deal’s political leverage [3].
Sources
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1.
The Hindu: India and U.S. Near Trade Deal: Joint Statement Expected in Days, Legal Agreement by Mid‑March – Details the Feb 5 announcement of an imminent joint statement, U.S. tariff cut to 18% via executive order, and India’s mid‑March legal pact requirement, plus ambitious import targets .
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The Hindu: India‑U.S. Talks Advance Trade Deal and Critical Minerals Cooperation – Covers the Feb 3‑4 meetings between Jaishankar and Rubio, the formalisation of critical‑minerals cooperation, and the Quad reaffirmation, providing diplomatic context for the trade negotiations .
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The Hindu: India‑U.S. Trade Deal Lowers Indian Tariffs to 18% Amid Praise and Criticism – Reports the tariff reduction from 25% to 18% announced after a Feb 2 phone call, highlights praise from Modi, Jaishankar, and Vaishnaw, and notes opposition from Congress leader Jairam Ramesh .
Timeline
Feb 2, 2026 – President Donald Trump and Prime Minister Narendra Modi hold a phone call in which they agree to lower the reciprocal U.S. tariff on Indian goods from 25% to 18%, a step announced as part of a broader trade agreement the next day [3].
Feb 3, 2026 – The United States formally announces the tariff reduction to 18% and a bilateral trade deal that aims to boost jobs, growth, and “Make in India”, with External Affairs Minister S. Jaishankar calling it a “growth catalyst”, Home Minister Amit Shah labeling it “historic”, Union Minister Ashwini Vaishnaw emphasizing democratic alliance, and Prime Minister Modi thanking Trump for the benefit to 1.4 billion Indians; Congress leader Jairam Ramesh criticises the pact as capitulation [3].
Feb 3‑5, 2026 – During a three‑day U.S. visit, Minister Jaishankar meets Secretary of State Antony Rubio and Treasury Secretary Scott Bessent to review the bilateral agenda, covering trade, energy, nuclear, defence, critical minerals and technology, and to discuss supply‑chain security, while Rubio agrees to formalise joint critical‑minerals exploration ahead of a U.S.‑hosted Critical Minerals Ministerial on Feb 4 [2].
Feb 4, 2026 – Jaishankar and Rubio reaffirm their commitment to the Quad (Australia, India, Japan, United States), pledging to expand bilateral and multilateral cooperation to sustain a prosperous Indo‑Pacific region [2].
Feb 4, 2026 – The United States convenes its inaugural Critical Minerals Ministerial, with Vice President J.D. Vance, Secretary Rubio, Senior Director David Copley and Under Secretary Jacob Helberg delivering opening remarks, aiming to diversify critical‑component supply chains and cement the India‑U.S. minerals partnership [2].
Feb 5, 2026 – Commerce Minister Piyush Goyal announces that India and the United States will sign a joint statement covering the first tranche of their Bilateral Trade Agreement within the next 4‑5 days, triggering an immediate U.S. executive‑order cut of tariffs on Indian imports to 18% and setting the stage for India’s own MFN tariff reductions after a legal pact expected in mid‑March [1].
Mid‑March 2026 (expected) – India plans to sign a formal legal agreement that will allow it to lower its WTO‑mandated MFN tariffs on U.S. products, converting the joint statement into binding authority and enabling the targeted $500 billion of U.S. imports over the next five years, including $70‑80 billion in Boeing orders and $100‑150 billion in data‑centre investments [1].