Former Finance Minister P Chidambaram has described the joint statement issued by the US and India on February 6, 2026, as unequal and marked by American audacity. He argues that the framework lacks true reciprocity, with India making several commitments. The statement includes India's pledges to reduce tariffs on US goods and purchase $500 billion worth of American products over five years.
The joint statement between the United States and India, released on February 6, 2026, outlines a framework for an interim trade agreement rather than a full Bilateral Trade Agreement (BTA). In his opinion column, former Finance Minister P Chidambaram criticizes it as based on deception. He remarked, 'We moved a mountain and we got a mouse.'
According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products. In contrast, the US will impose an 18 percent reciprocal tariff on Indian goods, down from 25 percent applied on April 2, 2025. The US promises to remove tariffs on items like generic pharmaceuticals, gems and diamonds, and aircraft parts only upon successful conclusion of the interim agreement. Chidambaram questioned, 'Where is the reciprocity in 0 per cent vs 18 per cent?'
India has agreed to address barriers to US medical devices, ICT goods, and food and agricultural products, with no corresponding obligations on the US. India intends to purchase $500 billion worth of US energy products, aircraft, precious metals, technology products, and coking coal over the next five years. An accompanying Executive Order by President Trump highlights India's commitments to halt direct or indirect imports of Russian oil, buy US energy products, and expand defense cooperation, in exchange for lifting the 25 percent penal tariff imposed on August 6, 2025.
If India resumes importing Russian oil, the US may reimpose the 25 percent tariff. Chidambaram noted that prior to April 2, 2025, US tariffs on Indian goods were at the MFN rate of 3 percent. Tariffs on steel and aluminum remain at 50 percent, and on auto components at 25 percent. Trade expert Ajay Srivastava pointed out that India is offering deeper concessions on US industrial goods and agricultural products. Chidambaram raised concerns about what India will buy for the $500 billion, which could erase India's small trade surplus with the US.
