On February 2, Donald Trump announced that the United States and India had reached a trade understanding that would lower the reciprocal tariff applied to Indian goods from 25 percent to 18 percent. The announcement followed a call with Indian Prime Minister Narendra Modi and reflects an adjustment to how the administration’s reciprocal tariff framework will apply to Indian imports.
In addition to the 25 percent reciprocal rate, an extra 25 percent surcharge was imposed in August in response to U.S. concerns regarding India’s continued purchases of oil from Russia. As part of the new arrangement, Trump has stated that India is committed to halting those purchases. U.S. officials indicated that this step was a factor in removing the additional 25 percent tariff layer and enabling the lower overall reciprocal rate.
The 18 percent reciprocal tariff is expected to be applied in addition to existing most-favored-nation (MFN) or product-specific U.S. duty rates, rather than replacing them. As a result, Indian goods would remain subject to standard tariff treatment, with the reciprocal rate layered on top.
Both governments described the tariff change as part of a broader effort to expand bilateral trade and address market access issues. India has signaled that it intends to reduce certain tariffs and non-tariff barriers affecting U.S. exports over time, although specific products and timelines have not yet been detailed.
Additional details are expected as trade officials on both sides clarify the scope and implementation of the agreement.
White House Review of EPA Climate Rule Approaches Completion
The White House review of the Environmental Protection Agency’s effort to unwind one of the central pillars of federal climate regulation is entering its final stages. On January 7, 2026, EPA transmitted a draft final rule to the Office of Information and Regulatory Affairs (OIRA) within the Office of Management and Budget for interagency review. That rule would rescind EPA’s 2009 greenhouse gas Endangerment Finding and eliminate the vehicle emissions standards that stem from it. Administration officials now indicate that OIRA is nearing completion of its review, positioning the rule for potential finalization in the near term.
At issue is EPA’s 2009 determination that greenhouse gas emissions endanger public health and welfare under the Clean Air Act. That finding has served for more than a decade as the legal foundation for federal regulation of greenhouse gases, including emissions standards for light-, medium-, and heavy-duty vehicles. In its current rulemaking, EPA argues that the statute does not clearly authorize regulation of pollutants based solely on their contribution to global climate change and contends that both the legal reasoning and scientific basis underlying the original determination warrant reconsideration.
The draft final rule therefore seeks to do two things simultaneously: revoke the Endangerment Finding itself and repeal the federal vehicle greenhouse gas standards derived from it. EPA characterizes the action as a reassessment of statutory authority and evidentiary support rather than a narrow regulatory adjustment, signaling a broader rethinking of how the agency interprets its climate-related responsibilities under existing law.
If OIRA clears the rule and EPA proceeds to finalize it, immediate legal challenges are widely expected. Any resulting litigation could take years to resolve, leaving manufacturers, vehicle producers, and other regulated sectors facing a prolonged period of regulatory and compliance uncertainty as courts weigh the scope of EPA’s authority under the Clean Air Act.
EPA Revises Cost-Benefit Approach for PM and Ozone Health Impacts
Recent EPA rulemaking materials indicate that the agency is revising how it presents the benefits of reductions in fine particulate matter (PM2.5) and ground-level ozone in its regulatory analyses. Specifically, EPA has stated that it will no longer convert certain estimated public-health outcomes associated with lower pollution levels into dollar values as part of its cost-benefit reviews.
For many years, EPA’s economic analyses accompanying major air quality rules have included monetized estimates of avoided premature mortality, hospitalizations, and lost workdays attributed to cleaner air. In its recent explanation, the agency said that as overall emissions decline and baseline air quality improves, the models used to assign precise monetary values to incremental health improvements involve greater uncertainty. EPA indicated that it will continue to quantify emissions reductions and describe associated health outcomes but will refrain from monetizing those impacts unless confidence in the methodology increases.
EPA officials have stated that health impacts will remain a consideration in setting air standards, even if those impacts are not expressed in dollar terms in formal economic analyses. The adjustment represents a change in how the agency communicates the benefits of pollution reductions in its regulatory documentation.
EPA Reconsiders Approach to Interstate Ozone Transport Requirements
The U.S. Environmental Protection Agency (EPA) is preparing a proposal that would revisit how it evaluates states’ obligations under the Clean Air Act’s “Good Neighbor” provision for interstate ozone transport. The provision requires upwind states to ensure their emissions do not significantly contribute to ozone nonattainment in downwind states. In recent years, EPA addressed this requirement through the Cross-State Air Pollution Rule and, more recently, the Good Neighbor Plan tied to the 2015 ozone National Ambient Air Quality Standard (NAAQS).
In a shift from earlier actions, EPA is now signaling its intent to approve several state implementation plans (SIPs) that it had previously disapproved. According to reporting, the agency’s forthcoming proposal would determine that certain upwind states’ existing air programs are sufficient to meet their interstate transport obligations for the 2015 ozone standard. If finalized, these approvals would replace earlier disapprovals that had triggered federal implementation plans (FIPs) under the Good Neighbor framework.
EPA’s reconsideration appears tied in part to recent court rulings that questioned aspects of the agency’s earlier modeling and analytical approach for determining interstate contribution. As a result, the agency is reevaluating how it assesses whether emissions from one state meaningfully affect air quality in another. The proposal may also withdraw or revise prior technical corrections and disapproval findings to align with this updated assessment.
DOL Introduces Incentive Program to Support Manufacturing Workforce Training
On January 28, 2026, the Employment and Training Administration within the U.S. Department of Labor announced the opening of the application portal for the American Manufacturing Apprenticeship Incentive Fund, a $35.8 million initiative intended to expand registered apprenticeship opportunities in advanced manufacturing occupations nationwide.
The incentive fund was established through a cooperative agreement with the State of Arkansas and is structured as a pay-for-performance program. Under the model, eligible registered apprenticeship sponsors may receive $3,500 for each new apprentice enrolled in a qualifying manufacturing apprenticeship program. The funding is designed to encourage employers and sponsors to create new apprenticeship slots and scale existing programs.
According to the Department, the program targets occupations tied to advanced manufacturing and other high-skill industrial sectors where employers report persistent workforce shortages. By linking funding directly to apprentice enrollment, the initiative seeks to accelerate program growth while supporting industry efforts to build a pipeline of trained workers through earn-and-learn models.
The Department is inviting eligible sponsors across the country to review the program requirements and submit applications through the newly launched portal.