NEW DELHI : The proposed trade deal between India and the United States is likely to retain a tariff safeguard agreed as part of the February framework, ensuring that New Delhi’s concessions do not remain open-ended if the US subsequently changes the agreed duty structure, a government official said.
The framework announced on February 6 already included a provision allowing either side to respond if the agreed tariff terms are changed.
The joint statement says that “in the event of any changes to the agreed upon tariffs of either country, the United States and India agree that the other country may modify its commitments.”
According to the official, this provision is likely to continue in the final agreement.
“The provision was already agreed in February and that the two sides recognise that there cannot be a final deal if one side’s commitments remain open-ended,” the official added.
To be sure, the provision, does not itself amount to a blanket prohibition on future tariff changes; rather, it provides for the other country to modify its commitments if agreed duties are changed.
The framework for an interim agreement, envisaged India reducing or eliminating tariffs on US industrial and a wide range of agricultural products, while Washington agreed to an 18 percent reciprocal tariff rate on originating Indian goods, with further tariff relief for specified products subject to the successful conclusion of the trade deal.
However, subsequent changes in US tariff policy have required both sides to revisit elements of the arrangement.
The safeguard assumes significance as the US continues to pursue multiple avenues for additional tariffs on global exports.
Most Indian goods currently face a 10 percent additional tariff imposed under the US Section 301 action related to forced-labour practices, while Washington is separately conducting a Section 301 investigation into structural excess capacity that could lead to further duties.
India also faces uncertainty from the Russia sanctions legislation that cleared the US Senate earlier this month and could give the president powers to impose tariffs of up to 100 percent on countries continuing to buy Russian energy.
In pharmaceuticals, the US has also announced a phased tariff plan under which generic drug imports would remain tariff-free for two years, before facing a 100 percent tariff for one year and 200 percent thereafter.
India and the United States remain engaged in talks to finalise their trade deal, with Commerce Secretary Shri Rajesh Agrawal recently saying both sides are committed to moving ahead with the framework agreed in February even as Washington’s tariff actions and investigations continue to create uncertainty.
As per the latest available data, Indian exports to the US rose nearly 13 percent to $9.02 billion in July 2026, while imports rose faster at 18.1 percent to $5.5 billion.
