India-US trade ties have witnessed a series of tariff-related developments since April 2025 amid shifting geopolitical dynamics.
In the latest development, US President Donald Trump has signed a law that authorises him to impose tariffs of up to 100% on countries that are major buyers of Russian oil and gas, including India and China. The law does not itself impose a new 100% tariff on Indian goods.
Here is a chronology of key tariff-related developments between the two countries, including major duty announcements.
April 2, 2025: Declaring the date "Liberation Day", Trump announced sweeping tariffs, or additional import duties, on a host of countries. In the case of India, the rate was 26%, comprising a 10% baseline tariff and a 16% reciprocal tariff. Before this date, only MFN (most favoured nation) tariffs applied. These are standard import duties charged on goods from WTO member countries.
April 9, 2025: The US suspended the 16% reciprocal tariff on Indian goods for 90 days, until July 9, 2025. The 10% baseline duty remained in place.
July 31, 2025: The US announced a 25% duty on Indian goods, effective from Aug. 7, 2025, at 9.30 am IST. From April 2 to Aug. 6, 2025, there was only a 10% additional duty on Indian goods.
Aug. 6, 2025: The US announced an additional 25% tariff on Indian goods as a penalty for New Delhi's continued purchase of Russian oil. Following the order, the total tariff on Indian goods, barring a small exemption list, rose to 50%.
Aug. 27, 2025: Indian goods faced 50% in additional duties in the US market, comprising a 25% reciprocal tariff and a 25% tariff linked to Russian oil purchases.
Feb. 2, 2026: India and the US agreed on a trade deal under which Washington would reduce the reciprocal tariff on Indian goods to 18% from 25%. The 18% duty never came into effect.
Feb. 6, 2026: India and the US issued a joint statement saying they had agreed on a framework for the first phase of the bilateral trade agreement. The statement said the US would apply an 18% reciprocal tariff under the agreement, subject to the successful conclusion of an interim agreement.
Feb. 7, 2026: The US rescinded the additional 25% tariff on Indian goods that had been imposed over India's purchases of Russian oil.
Feb. 20, 2026: The US Supreme Court struck down the reciprocal-tariff system. From that day, only MFN duties applied to Indian goods.
Feb. 24, 2026: The US introduced a new 10% global tariff regime covering India, meaning Indian goods faced the 10% tariff in addition to applicable MFN duties. The measure was imposed for 150 days.
July 24, 2026: The global tariff expired. The US simultaneously imposed an additional 10% tariff on India under Section 301, citing concerns related to "forced labour".
The label and legal basis changed from a global tariff to an India-targeted tariff. The effective rate on most covered exports remained the applicable MFN tariff plus 10%. The US Trade Representative subsequently confirmed the 10% Section 301 rate for India.
Sept. 18, 2026: President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act, which authorises him to impose tariffs of up to 100% on countries that are among the largest buyers of Russian oil and gas, including India and China. The law gives Trump new tariff powers but does not itself impose a 100% tariff on Indian goods.
Current position: A 10% Section 301 tariff applies to Indian exports, barring certain goods, in addition to applicable MFN duties.
Besides this, there are sectoral duties. Steel and aluminium products can face 50% Section 232 duties, while certain derivative metal products are subject to different rates. Smartphones, medicines and energy products are exempted from the Section 301 tariff under applicable exemptions.
For example, if a shirt from India attracts a 5% MFN tariff in the US, the total tariff at present would be 5% plus the additional 10% Section 301 tariff.
(With inputs from PTI)