Over the last one and a half years, India-US ties have faced pressure amid tariff negotiations, with the Trump administration taking a tough stance on tariffs on Indian imports. The US House of Representatives passed a sanctions bill on Wednesday that clears the way for tariffs of up to 100% on the five biggest purchasers of Russian oil and gas, including India. Since February 2025, there have been several twists and turns in the tariff story.
The two countries also released a framework for a trade deal. The US cited India’s continued imports of goods allegedly made using forced labour as the reason for the move. The two countries also agreed to work towards a limited trade deal and set a target of doubling bilateral trade to $500 billion by 2030. This period saw India-US relations ease somewhat, as t he US decided to lower the tariff on Indian imports to 18% in exchange for India halting Russian oil purchases and reducing trade barriers. After the 150-day period ended, Trump announced a fresh 10% tariff on Indian imports.
Two months later, the US decided to impose a 26% tariff on several Indian imports. However, Trump later paused the implementation for 90 days, during which a 10% duty was imposed on all imports from India.
