U.S. and India reach Interim Trade Deal, 25% tariffs on Indian goods lifted as part of broader agreement
On February 6, 2026, the U.S. and India announced a framework for an Interim Trade Agreement on reciprocal trade. Effective February 7, 2026 (12:01 a.m. ET), the U.S. eliminated the additional 25% tariff on Indian-origin goods previously imposed under Executive Order 14329 in response to India’s purchases of Russian oil. CBP confirmed that HTSUS headings 9903.01.84–9903.01.89 are terminated. Refunds may be available at a later date. Once the agreement is finalized and both sides exchange notifications, the U.S. will reduce the reciprocal tariff under EO 14257 from 25% to 18% on many Indian goods, including textiles, apparel, leather, footwear, plastics, chemicals, and machinery. India will eliminate or reduce tariffs on U.S. industrial goods and a range of agricultural products. Filers should review product eligibility and take corrective action where applicable.
Department of Commerce implements a USMCA benefit for importers of Medium- and heavy-duty vehicles (MHDV) subject to 232 duties from Canada and Mexico; No duties on U.S. origin content in certain circumstances
On February 2, 2026, the Department of Commerce (DOC) published a procedure for applying for an exemption from the 25% Section 232 duties on MHDVs for U.S.-origin content. Upon approval by the DOC, vehicles imported from Mexico or Canada that qualify for preferential treatment under the USMCA will be subject to 25% duties only on the value of the non-U.S. content. To apply for this benefit, importers must submit a detailed application to the DOC for each vehicle model, including certified calculations of the vehicle’s total customs value, the specific U.S. content value, non-U.S. content (Total value of the MHDV minus value of the U.S. content in a MHDV), production locations, final assembly country, USMCA eligibility certification (including steel/aluminum and labor value rules), and importer/manufacturer details. Certain approved applications will be retroactive to November 1, 2025, at the DOC’s discretion. All approved applications will be valid for one calendar year, and eligible for renewal. The Federal Register notice warned importers that overstating U.S. content could trigger full 25% tariffs retroactively and prospectively on all affected model imports by the offending importer.
