White House Releases Joint Statement on U.S.-India Trade Deal: On February 6, President Donald Trump issued a Joint Statement outlining the U.S.-India Bilateral Trade Agreement (BTA) that he announced via social media earlier this week. Indian goods are currently subject to a 25% reciprocal tariff, as well as a 25% “penalty” tariff due to the nation’s extensive trade barriers and purchase of Russian oil and military equipment.
 
Under the BTA, the United States commits to reducing the 25% reciprocal tariff on Indian goods to 18%. The new reciprocal rate will apply to several products subject to existing Section 232 tariffs, including steel and copper, and India will receive preferential treatment for autos and generic pharmaceuticals and ingredients, in alignment with other trade frameworks. Following the finalization of the agreement, imports from India outlined in the Potential Tariff Adjustments for Aligned Partners (PTAAP) Annex will also be exempted from all reciprocal tariffs.
 
Separately, President Trump issued an executive order (EO) to eliminate the 25% “penalty” tariff, effective Feb. 7. As a result, the minimum tariff imposed on Indian imports will decrease from 50% to 18%.
 
In exchange, India agreed to eliminate or reduce tariffs on U.S. industrial goods and agricultural products, as well as negotiate preferential market access for American goods. In addition, India will purchase $500 billion of American energy, technology, and agricultural products. The nations also committed to address their non-tariff barriers, including those impacting digital trade, coordinate on select regulatory standards, and enhance economic and security alignment.
 
At this point, neither the United States nor India has taken official action to implement the commitments outlined in the Joint Statement.

Trump Administration Finalizes Trade Agreements with El Salvador and Guatemala: On January 29, the Office of the U.S. Trade Representative (USTR) announced the signing of the U.S.-El Salvador trade agreement. The agreement finalizes and defines the scope of the framework trade deal reached in November 2025. The majority of Salvadoran goods remain subject to a 10% baseline tariff, with two notable exceptions. Goods that cannot be “grown, mined, or naturally produced in the United States in sufficient quantities” and certainly products originating under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), such as textiles and apparel products, will be exempt from the 10% duty under the future agreement. While El Salvador did not reduce tariff rates for U.S. goods, it reduced several non-tariff trade barriers, including acceptance of Food and Drug Administration (FDA) certificates for medical devices and Federal Motor Vehicle Safety Standards (FMVSS) for automobiles. El Salvador will also remove sanitary and phytosanitary (SPS) barriers to U.S. agricultural goods and better align with international labor rights.
 
The following day, USTR announced the signing of the U.S.-Guatemala trade agreement. The agreement similarly finalizes the framework deal reached in November 2025 and mirrors the tariff treatment present in the El Salvador agreement, where the majority of Guatemalan goods remain subject to a 10% baseline tariff. Exceptions for products originating under CAFTA-DR or products not present in sufficient quantity in the United States remain as well. Guatemala also reduced non-tariff trade barriers related to U.S. agriculture, autos, medical devices, and pharmaceutical products. Guatemala committed to stronger labor standards, including presumptively blocking imports from entities subject to U.S. forced labor findings. In addition, Guatemala will align unilateral sanctions and export controls with the U.S. Entity and Specially-Designated Nationals (SDN) list.