In a diplomatic “oops” moment that sparked concerns over policy sovereignty, the White House was forced to quietly revise its official factsheet for the India-US Interim Trade Agreement on February 11, 2026. The original document, released earlier this week, claimed that India had “committed” to removing its Digital Services Tax (DST)—popularly known as the “Google Tax.”
The reference was entirely deleted in the updated version, as New Delhi pointed out that it had already scrapped the levy months before negotiations even reached their peak.
Chronology of a Correction
The confusion stemmed from the White House’s attempt to frame a pre-existing Indian policy change as a fresh win for the Trump administration.
- April 1, 2025: India officially abolishes the 6% equalization levy (Google Tax) on digital advertising through the Finance Bill 2025.
- February 9, 2026: The White House releases a factsheet stating India “will remove its digital services taxes” as part of the new trade deal.
- February 11, 2026: Following a pushback from Indian negotiators and local media reports, the White House issues a “corrected” factsheet. The specific line about removing the tax is gone, replaced with a vague commitment to “negotiate bilateral digital trade rules.”
Why the “Google Tax” Matters
The Equalization Levy was a long-standing thorn in US-India relations. Introduced in 2016, it targeted the advertising revenue of non-resident tech giants like Google, Meta, and Amazon. The US Trade Representative (USTR) had previously labeled it “discriminatory” against American firms.
While India removed the tax to ease trade frictions, the Indian Ministry of Commerce remains wary of signing any deal that permanently prohibits the country from reintroducing similar taxes in the future. Legal advisers have cautioned that such a “unilateral commitment” could compromise India’s digital sovereignty and its ability to tax the “Significant Economic Presence” of global tech giants.
Beyond the Tax: Other Major Revisions
The “Google Tax” wasn’t the only thing the US had to walk back. The revised factsheet shows a broader “softening” of language to align with India’s sensitivities:
| Original Factsheet Claim | Revised Factsheet Language | Significance |
| India “committed” to $500B purchases. | India “intends” to purchase. | Shifts from a binding to a non-binding goal. |
| India will reduce tariffs on “certain pulses.” | Reference to pulses deleted. | Protects Indian farmers from cheap US imports. |
| India will remove digital services taxes. | Section entirely removed. | Maintains India’s right to future tax policy. |
What This Means for the Final Deal
The revisions highlight the “calibrated negotiation” style of the Indian government, ensuring that de-escalation with the US doesn’t come at the cost of rigid sovereign concessions. With the formal signing of the Bilateral Trade Agreement (BTA) expected by mid-March 2026, these edits signal that while India is a willing supply-chain partner, it is not a “concession taker.”
