Home / Business and Economy / US Drops Tariffs on Indian Aircraft Parts
US Drops Tariffs on Indian Aircraft Parts
7 Feb
Summary
- US removes tariffs on certain Indian aircraft and parts.
- India gets preferential tariff rate quota for auto parts.
- Pharmaceuticals and ingredients to have negotiated outcomes.
As of February 7, 2026, the United States will remove tariffs on certain aircraft and aircraft parts originating from India. This action is intended to counteract national security concerns that led to the imposition of these tariffs in March 2018. The removal of these duties marks a significant development in bilateral trade relations.
In parallel, India will receive a preferential tariff rate quota for automotive parts, subject to tariffs imposed in May 2019 for national security reasons. This preferential treatment aims to foster trade in the automotive sector. Additionally, the U.S. Section 232 investigation into pharmaceuticals and their ingredients will determine negotiated outcomes for generic pharmaceutical products.
