White House announces removal and reduction of additional U.S. tariffs on imports from India, impacting duty rates on Indian-origin goods.

FACT SHEET REGULATORY BRIEFING – U.S.–INDIA TRADE DEAL

1. What changed

• The President signed an Executive Order removing an additional 25% tariff on imports from India.
• The United States will lower the “Reciprocal Tariff on India” from 25% to 18%.
• These actions are part of an Interim Agreement framework between the United States and India and are tied to India’s commitment to stop purchasing Russian Federation oil and to broader reciprocal trade commitments.
• While the White House fact sheet announces the policy decision, detailed implementation (e.g., HTS Chapter 99 provisions, product coverage, and operational dates) will be set out in subsequent official instruments (e.g., Presidential Proclamation, Federal Register notices, and U.S. International Trade Commission (USITC) HTS updates).

2. Affected products

The fact sheet does not specify exact HTS codes or product lists for the U.S. tariffs being removed or reduced. However, it clearly indicates:

• Scope: “Imports from India” that were subject to:

– An additional 25% tariff; and

– A 25% “Reciprocal Tariff on India,” now reduced to 18%.

• Likely structure:

– These measures are expected to be implemented via Chapter 99 HTS provisions (similar to Section 232/301 style additional duties) that apply on top of the normal Column 1 duty rate for Indian-origin goods.

– Coverage may be broad (e.g., all products of India) or targeted to specific sectors; the fact sheet does not specify, so importers must rely on forthcoming Federal Register and HTS updates for precise product coverage.

• Indian commitments (for context only – export side):

– India will reduce or eliminate tariffs on a wide range of U.S. exports (industrial goods, DDGs, red sorghum, tree nuts, fruits, pulses, soybean oil, wine and spirits, etc.). These are outbound from the U.S. and do not directly affect U.S. import duties, but they explain the reciprocal nature of the deal.

Because the White House document is high-level, importers should expect:

• A specific list of HTS subheadings and/or a country-wide Chapter 99 provision in subsequent implementing documents.
• Possible exclusions or carve-outs for sensitive products.

3. Rate changes

Based on the fact sheet:

1) Removal of additional 25% tariff on imports from India

• Old rate: Normal Column 1 duty rate + additional 25% ad valorem on covered Indian-origin imports.
• New rate: Normal Column 1 duty rate only (additional 25% removed) for those same products, once the Executive Order is implemented via HTS/Customs mechanisms.
• Numerical change: Reduction of 25 percentage points in the additional duty component.

2) Reduction of Reciprocal Tariff on India from 25% to 18%

• Old rate: 25% (described as the “Reciprocal Tariff on India”).
• New rate: 18%.
• Numerical change: 7 percentage point reduction (25% → 18%).

Important caveats:

• The fact sheet does not specify whether the Reciprocal Tariff is:

– A uniform additional duty on all Indian-origin goods; or

– A targeted measure on specific HTS lines.

• It also does not specify whether the 25% tariff being “removed” and the 25% Reciprocal Tariff are the same measure or two distinct layers. The language suggests:

– One Executive Order removes an additional 25% tariff on imports from India (likely a specific measure tied to India’s Russian oil purchases), and

– Separately, the U.S. will lower a broader Reciprocal Tariff on India from 25% to 18%.

Until implementing documents are issued, importers should treat both as distinct potential changes and verify which Chapter 99 or special tariff programs apply to their products.

4. Dates

• Announcement date: February 9, 2026 (White House fact sheet date).
• Executive Order signing: “Last Friday” relative to February 9, 2026 (likely February 6, 2026).
• Effective date: Not explicitly stated in the fact sheet.

– In practice, the effective date for duty changes will be specified in the Executive Order, any Presidential Proclamation, and/or the Federal Register notice and HTS updates.

• Duration/expiration:

– No sunset or expiration date is mentioned.

– These measures should be treated as open-ended until modified or revoked by subsequent action.

• Future milestones:

– “In the coming weeks, the United States and India will promptly implement this framework and work toward finalizing the Interim Agreement…”

– Additional changes (including further tariff and non-tariff barrier adjustments) may follow as part of a broader Bilateral Trade Agreement (BTA).

5. Required actions for importers, brokers, and compliance teams

A. Immediately (policy awareness and risk assessment)

1) Identify exposure to India-origin imports

• Run reports of all imports with Country of Origin = India over the last 12–24 months.
• Segment by HTS code, value, and duty paid.
• Flag entries where any additional 25% duty or special “Reciprocal Tariff” was applied (likely via Chapter 99 codes or special program indicators).

2) Map current duty structure

• For each India-origin HTS line, document:

– Base Column 1 duty rate.

– Any additional duties (e.g., 25% or 18%) applied via Chapter 99 or other special provisions.

• This will allow quick recalculation once the official HTS/Chapter 99 changes are published.

B. Upon issuance of implementing regulations/HTS updates

1) Update classification and duty calculation systems

• Incorporate new Chapter 99 provisions or amendments that:

– Remove the additional 25% duty on specified Indian-origin goods; and/or

– Reduce the Reciprocal Tariff from 25% to 18%.

• Ensure ERP, global trade management (GTM), and broker systems reflect the new rates and any new or revised Chapter 99 numbers.

2) Adjust broker instructions

• Issue updated written instructions to customs brokers covering:

– Applicable HTS codes for India-origin goods.

– Whether any additional duties still apply and at what rate (18% vs 25% vs 0%).

– Correct use of Chapter 99 numbers and country-of-origin qualifiers.

3) Review and, where appropriate, seek refunds

• If the effective date of the removal/reduction is retroactive or allows for post-summary corrections:

– File Post Summary Corrections (PSCs) or Protests for entries where the higher 25% rate was paid after the effective date.

– Coordinate with brokers to ensure all eligible entries are captured.

• Maintain documentation supporting eligibility (country of origin, HTS classification, entry dates, and duty calculations).

C. Strategic sourcing and contracting

1) Reassess landed cost models

• Recalculate landed costs for India-origin products using:

– Base Column 1 duty rate only (where the 25% is removed), or

– Base rate + 18% (where the Reciprocal Tariff is reduced).

• Compare against alternative sourcing countries that may still be subject to higher additional duties.

2) Update commercial contracts

• Where contracts reference “duty-inclusive” pricing or allocate tariff risk:

– Renegotiate pricing or duty-sharing clauses to reflect lower U.S. import duties on Indian-origin goods.

– Ensure future contracts allow for adjustments if the Reciprocal Tariff is further modified under the eventual BTA.

D. Compliance controls and documentation

1) Country-of-origin verification

• Because the benefits are country-specific (India), strengthen origin controls to prevent misdeclaration:

– Verify supplier origin documentation (certificates of origin, manufacturing records).

– Implement supplier declarations confirming substantial transformation in India where relevant.

2) Internal training

• Brief internal stakeholders (procurement, logistics, finance) on:

– The removal of the 25% additional duty and reduction to 18% where applicable.

– The need to use correct HTS and Chapter 99 codes once published.

3) Monitor for further changes

• The fact sheet signals ongoing negotiations toward a broader BTA that may:

– Further reduce or eliminate tariffs on specific Indian-origin products.

– Introduce new rules of origin, digital trade rules, and other disciplines that could affect admissibility or duty treatment.

• Assign responsibility within the trade compliance team to track:

– Federal Register notices related to India.

– USITC HTS updates.

– CBP guidance (CSMS messages, Informed Compliance Publications, FAQs).

6. References and where to find implementing details

Primary policy announcement:

• White House Fact Sheet: “Fact Sheet: The United States and India Announce Historic Trade Deal” (February 9, 2026)

– https://www.whitehouse.gov (navigate to Briefing Room → Fact Sheets and search by title and date)

Expected follow-on regulatory documents (to be monitored):

1) Executive Order text

• Will provide the legal basis and may specify:

– The scope of imports from India covered by the removal of the additional 25% tariff.

– The effective date and any transition provisions.

• Likely available at:

– https://www.whitehouse.gov/presidential-actions/

2) Presidential Proclamation and Federal Register notices

• Will operationalize the tariff changes, including:

– Amendments to the Harmonized Tariff Schedule of the United States (HTSUS).

– Creation or modification of Chapter 99 provisions for India.

• Federal Register: https://www.federalregister.gov

– Search terms: “India,” “additional 25 percent duty,” “Reciprocal Tariff on India,” “tariff modification.”

3) USITC HTSUS updates

• Official HTS text and Chapter 99 changes:

– https://hts.usitc.gov

4) CBP operational guidance

• Customs and Border Protection (CBP) may issue:

– Cargo Systems Messaging Service (CSMS) notices with programming instructions for ACE.

– Guidance on filing entries under revised Chapter 99 provisions.

• CBP CSMS: https://www.cbp.gov/trade/automated/cargo-systems-messaging-service

Action summary for compliance teams:

• Immediately:

– Inventory India-origin imports and identify where a 25% additional duty or Reciprocal Tariff currently applies.

– Prepare to adjust systems and broker instructions once HTS/Chapter 99 details are published.

• Short term (upon publication of implementing rules):

– Update HTS/Chapter 99 coding and duty rates in all systems.

– File PSCs/Protests for any overpaid duties if retroactivity is allowed.

• Ongoing:

– Monitor Federal Register, USITC HTS, and CBP CSMS for detailed product coverage, effective dates, and any further India-related tariff changes under the evolving U.S.–India trade framework.