India Is Kicking Trump's Butt on the Trade Deal, TACO Time (Again)
•February 11, 2026
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Why It Matters
The changes highlight the delicate balance Washington and New Delhi must strike on agriculture and digital tax issues, influencing future bilateral trade outcomes and investor expectations.
Key Takeaways
- •Pulse tariff cut reference deleted from factsheet.
- •Digital services language softened, negotiations emphasized.
- •Commitment wording changed from “intends” to “committed.”
- •Agriculture and digital tax remain negotiation flashpoints.
- •Market impact minimal; talks remain ongoing.
Pulse Analysis
The United States and India have been navigating a complex trade agenda that stretches beyond traditional goods into high‑growth sectors such as technology and agriculture. Recent revisions to the official factsheet underscore how both capitals are fine‑tuning their public narrative to manage domestic political pressures while keeping the dialogue alive. By adjusting phrasing rather than abandoning objectives, the White House signals a willingness to accommodate Indian sensitivities without conceding core U.S. interests, a strategy that mirrors broader diplomatic trends in Indo‑Pacific trade negotiations.
Agricultural market access, particularly for pulses like lentils and chickpeas, remains a flashpoint because these crops are integral to India’s food security and farmer livelihoods. The removal of any mention of tariff reductions suggests that Washington recognizes the political risk of pushing too hard on a sector where price volatility can trigger farmer unrest. For U.S. exporters, the ambiguity means short‑term uncertainty, but the underlying demand for Indian agricultural imports still offers long‑term growth potential if a mutually acceptable concession can be reached.
Digital services taxation has emerged as the most contentious issue, with the U.S. accusing India of unfairly targeting American tech firms. The softened language—shifting from a definitive ban on customs duties to a promise of continued negotiations—reflects a pragmatic approach to avoid a stalemate. As global digital economies expand, the outcome of these talks will set a precedent for how major economies reconcile revenue‑raising digital taxes with the need for open market access, influencing policy debates far beyond the bilateral corridor.
India is kicking Trump's butt on the trade deal, TACO time (again)
Summary:
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White House revises US-India trade factsheet
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Reference to pulse tariff cuts removed
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Digital services language softened
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Commitment wording adjusted
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Negotiations appear ongoing
The White House has revised its official factsheet outlining U.S.–India trade discussions, quietly removing references to agricultural tariff cuts and softening language around digital trade commitments.
In an updated version of the document, a prior reference to India cutting tariffs on pulses, a politically sensitive agricultural product, was deleted. Pulses, which include lentils and chickpeas, are a key component of India’s domestic farming sector, making tariff reductions contentious.
The revised factsheet also adjusts wording around broader trade commitments. Where the earlier version said India “intends” to purchase more U.S. products, the new language states India is “committed” to doing so, a shift that subtly alters the tone but leaves practical implementation details unclear.
More notably, the White House scaled back language regarding digital services. Previous references to scrapping digital services taxes and banning customs duties on electronic transmissions were removed. Instead, the updated statement says the two countries will negotiate digital trade rules, signalling a less definitive outcome than initially presented.
The edits suggest either ongoing negotiations or a recalibration of messaging as trade talks continue. Digital services taxation has been a flashpoint between Washington and New Delhi, with U.S. officials long criticising India’s digital tax framework as discriminatory toward American technology firms.
While the changes do not necessarily indicate a breakdown in talks, they underscore the complexity of finalising trade commitments across politically sensitive sectors. Agricultural market access and digital regulation remain among the most challenging components of any expanded bilateral trade framework.
Markets are unlikely to react sharply to the wording revisions alone, but the episode highlights the fluid nature of U.S.–India trade negotiations as both sides seek incremental progress without triggering domestic political backlash.
This article was written by Eamonn Sheridan at investinglive.com.
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