The global trade landscape just shifted in a major way. If you’ve been following the “tariff wars” of 2025, you know that tensions between Washington and New Delhi were at an all-time high. But as we move into 2026, the narrative has flipped from retaliation to reconciliation.
On February 6, 2026, a landmark Interim Trade Agreement (ITA) was announced, effectively hitting the “reset” button on billions of dollars in trade. For American exporters, this is the news they’ve been waiting for. India—a market of 1.4 billion people—is opening its doors wider by eliminating or drastically reducing duties on a vast array of “Made in USA” products.
In this deep dive, we’ll break down exactly which US goods are getting the “green light” for tax-free or low-tariff entry into India this year.
The Big Reset: Why 2026 is Different
In late 2025, US goods faced staggering retaliatory duties in India, while Indian exports to the US were hit with a 50% “punitive” tariff. The 2026 deal has de-escalated this.
Under the new framework, India has committed to moving toward zero tariffs on a wide variety of industrial and agricultural products. In return, the US has slashed its reciprocal tariff on Indian goods to a much more manageable 18%. This isn’t just a policy shift; it’s a strategic alliance designed to stabilize supply chains and reduce reliance on third-party markets like China.
1. The “Green List”: US Agricultural Goods & Food Products
Agriculture has always been the most sensitive part of India-US trade talks. However, the 2026 agreement provides unprecedented access for American farmers.
Key Exemptions and Reductions:
- Tree Nuts (Almonds & Walnuts): India is the world’s largest consumer of American almonds. The new deal slashes tariffs on in-shell almonds, walnuts, and pistachios.
- Soybean Oil: A major win for the US Midwest, soybean oil imports will see significantly lower barriers.
- Fresh & Processed Fruits: Specifically, American berries (blueberries, cranberries) and cherries are now seeing “zero-duty” or heavily reduced pathways.
- Pulses: For the first time, “certain pulses” (like lentils and peas) have been included in the White House fact sheet for tariff reduction, though India is balancing this carefully with domestic production.
- Wine and Spirits: If you enjoy premium American Bourbon or California wines, expect prices to stabilize. India is reducing the “Tariff King” level duties on high-end US spirits.
| Product Category | New 2026 Status | Impact on Consumers |
|---|---|---|
| Almonds/Walnuts | Significant Reduction | Lower prices for festive seasons |
| Soybean Oil | Duty Cut | Cheaper raw material for food industry |
| Apples & Pears | Zero/Low Duty | Better availability of premium US fruit |
| Wine & Bourbon | Calibrated Reduction | 10-20% price drop at retail |
2. Industrial Goods & Tech: Powering Digital India
India is in the middle of a massive digital transformation, and American tech is the engine. The 2026 deal removes several “non-tariff barriers” and duties that previously made US hardware expensive.
What’s getting cheaper:
- GPUs & Data Center Tech: To support India’s AI mission, Graphics Processing Units (GPUs) and specialized server components will see duty-free access.
- ICT Goods: Information and Communication Technology goods, including routers and high-end networking equipment, are seeing a removal of restrictive import licensing.
- Medical Devices: US-made pacemakers, MRI machines, and specialized surgical tools are now on a “phased elimination” track, making life-saving technology more affordable in Indian hospitals.
3. Energy and Aerospace: The $500 Billion Pledge
Perhaps the most staggering part of the 2026 deal is India’s “intent” to purchase $500 billion worth of US goods over the next five years. This isn’t just about small consumer items; it’s about massive infrastructure.
- Aviation & Aircraft Parts: India has agreed to eliminate or reduce tariffs on US-made aircraft and parts. This is a massive boost for companies like Boeing as Indian carriers like Air India and IndiGo expand their fleets.
- Coking Coal & Natural Gas: As India pivots away from Russian energy (a key condition of this deal), US Liquefied Natural Gas (LNG) and coking coal will enter India with preferential treatment.
- Critical Minerals: Essential for the EV revolution, processed minerals from the US will enjoy lower barriers to support India’s “Make in India” initiatives for batteries.
Expert Insight: What This Means for Business Owners
“This deal is a ‘Strategic Window.’ At 18% reciprocal tariffs and zero-duty on tech, India is now more competitive than Vietnam or China in the US market, while American firms get a ‘first-mover’ advantage in India’s growing middle class.” — Trade Analyst Insight, Feb 2026.
Tips for Exporters:
- Check Rules of Origin: The 2026 deal has strict “Rules of Origin” to ensure that only products truly made in the USA (not just shipped through it) get the tax break.
- Monitor the BTA: Remember, this is an Interim agreement. A full Bilateral Trade Agreement (BTA) is still being “papered,” which could include even more sectors by late 2026.
Conclusion:
The 2026 tariff exemptions mark more than just a change in numbers on a spreadsheet. They represent a fundamental shift in geopolitical alliances. By opening up sectors like agriculture, tech, and energy, India is positioning itself as the primary alternative to China for American businesses.
Whether you are a consumer looking for cheaper California almonds or a tech firm looking to scale in Bangalore, the 2026 trade reset is the most significant economic development of the decade.
Disclaimer: The information provided in this article is based on the Interim Trade Agreement (ITA) announcements as of February 2026. Trade policies and tariff rates are subject to change as negotiations for the final Bilateral Trade Agreement (BTA) continue.
