US Tariff Call Likely Within 3-4 Days; 18% Rate Under Discussion

U.S. President Donald Trump can reduce tariffs on imports from India to 18% from the current 25% without issuing a fresh Executive Order, according to a senior official in India’s Ministry of Commerce and Industry.

The official said the U.S. can implement the change by simply updating the U.S. Federal Register, a process that is expected to take place in the next “3-4 days”.

What Is The Reciprocal Tariff Cut?

A joint statement issued on 6 February 2026 said the U.S. agreed to reduce reciprocal tariffs on Indian imports to 18%, down from 25%, which had been imposed in July 2025.

However, the 25% tariffs are still in place, as the revised rate has not yet been formally implemented.

What Happened To The Penal Tariffs Linked To Russia Trade?

In addition to reciprocal tariffs, the U.S. imposed an additional 25% punitive tariff on Indian goods in August 2025, linked to India’s energy trade with Russia. This had taken total tariffs on Indian goods to 50%.

Trump issued Executive Order 14384 on February 6, which removed the 25% penal tariffs effective February 7, bringing tariffs back down to the reciprocal 25% level.

What Did Piyush Goyal Say About The Tariff Reduction?

Commerce Minister Piyush Goyal said he expects the U.S. to bring down the remaining reciprocal tariffs from 25% to 18% in the coming week.

He also pointed out that U.S. tariffs are issued through executive orders, so they can be changed through executive action without waiting for an interim trade agreement.

At the same time, he made it clear that India cannot reduce tariffs on U.S. imports until the legal trade document is formally signed. According to him, the interim agreement is likely to be signed around mid-March 2026.

Because of this difference in process, the U.S. can move faster on tariff changes, while India can act only after the agreement is finalised.

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What Does This Mean For Investors?

It is anticipated that the U.S. tariffs on Indian imports would be reduced to 18%, which could give a good signal to the export orientated industries, more so when the reduction is recorded within the next few days, as it is pointed out.

A reduced tariff load can serve to increase price competitiveness for Indian exporters in the U.S. market and decrease uncertainty in the pressure on earnings related to trade. Nonetheless, as the reciprocal tariff reduction is yet to be finalised and on the basis of U.S. procedural calendars, markets can be reserved until the Federal Register update is officially aired.

Investors should likely track progress on the interim trade agreement expected in mid-March, as it could shape the broader direction of India-U.S. trade flows and sectoral sentiment going forward.

Sources:

The Hindu

Reuters