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NEW DELHI: The India-US trade ties have witnessed a string of tariff-related developments since April 2025 amid the seesawing geopolitical developments. In the latest, US President Donald Trump has signed a law that seeks to impose steep levies on Russia and its top energy buyers such as China and India.
In the latest, US President Donald Trump has signed a law that seeks to impose steep levies on Russia and its top energy buyers such as China and India.
Here is a chronology of key tariff-related developments between the two countries, including major duty announcements.
Declaring the date as "Liberation Day", Trump announced sweeping tariffs (additional import duty) on a host of countries. In case of India, it was 26 per cent (10 per cent baseline tariff and 16 per cent reciprocal tariff).
Before this date, only MFN (most favoured nation) tariffs were there. These are standard import duties charged on goods from all WTO member countries.
The US suspends the 16 per cent reciprocal tariff on Indian goods for 90 days (until July 9, 2025). But the 10 per cent baseline duty remained.
The US announced a 25 per cent duty to be effective from August 7, 2025 (9.30 am IST). From April 2 to August 6 last year, there was only 10 per cent additional duty on Indian goods.
Additional 25 per cent tariff announced on goods coming from India as penalty for New Delhi's continued purchase of Russian oil. After this order, the total tariff on Indian goods, barring a small exemption list, rose to 50 per cent.
Indian goods facing 50 per cent (25 per cent reciprocal tariff and 25 per cent Russian oil tariff) additional duties in the US market.
India and the US agreed on a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from current 25 per cent. The 18 per cent duty never came into effect.
India, the US issued a joint statement stating that they have agreed on a framework for the first phase of the bilateral trade agreement.
The US rescinded the additional 25 per cent tariff on Indian goods, which was imposed for buying Russia oil.
The US Supreme Court struck down the reciprocal-tariff system. From that day, again only MFN duties were there on Indian goods.
The US introduced a new 10 per cent global tariff regime, covering India (10 per cent plus MFN duty only). It was imposed for 150 days only.
The global tariff expired. The US simultaneously imposed a 10 per cent 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 MFN tariff + 10 per cent.
President Trump signed the Sanctioning Russia and Iran Act, which authorises him to impose tariffs of up to 100 per cent on countries buying Russian oil and gas, including China and India.
Section 301 tariff (10 per cent) applies to on Indian exports, barring certain goods.
Besides this, there are sectoral duties: Steel and aluminium: 50 per cent; auto components: 25 per cent. Smartphones, medicines and energy products are exempted.
Additional or reciprocal tariff: For example, if a shirt from India attracts a 5 per cent MFN tariff in the US, the total tariff at present is 5 per cent plus an additional 10 per cent (imposed under Sec 301 probe).