India and the United States have been engaged in intensive trade negotiations over the past several months, aiming to settle longstanding issues and avoid rising tariffs.
Despite sustained diplomatic efforts, talks have so far failed to produce a breakthrough. US President Donald Trump announced a 25% tariff on Indian exports on Wednesday ahead of the Aug. 1 deadline. Trump also hinted at further unspecified penalties linked to India's continued imports of Russian military equipment and energy.
Here's a summary of how the discussions have unfolded and what lies ahead.
Modi's Visit To US
The process began with Prime Minister Narendra Modi's visit to Washington on Feb. 13. A joint statement with US President Donald Trump followed, outlining the intent to pursue "new, equitable" trade terms under Trump's renewed focus on bilateral deals. This meeting set the tone for accelerated negotiations.
Piyush Goyal's Visit To US
Following this, Commerce Minister Piyush Goyal visited the US from March 4–6 to build on the political momentum and engage in policy-level talks. A US trade delegation then travelled to India from March 26–29 to hold technical discussions on issues ranging from digital trade to pharmaceuticals and agricultural access.
Between March and July, five in-person negotiation rounds were held, supported by sector-specific virtual dialogues. During this period, Goyal visited the US two more times and met with US Trade Representative Howard Lutnick to push for an early agreement.
Trump's Reciprocal Tariffs
In parallel, the US took steps to ramp up pressure. On April 2, Trump's administration announced reciprocal tariffs on countries without bilateral deals. For India, the tariff was initially set at 26%. A 90-day pause in implementation was declared on April 9, but this reprieve ended on July 9 and was extended just once, until Aug. 1.
As the extended deadline came closer the US imposed a 25% tariff on Indian exports with an additional penalty. This came despite ongoing negotiations and was further compounded by threats of additional tariffs targeting BRICS nations, particularly those still purchasing Russian oil — including India.
Sixth Round Of Talks Scheduled On Aug. 25
Looking ahead, the sixth round of talks is scheduled for Aug. 25, when a US team will visit New Delhi. Both sides are aiming to finalise the first tranche of a Bilateral Trade Agreement by early autumn (September–October).
While dialogue continues, the imposition of tariffs marks a serious setback and reflects broader geopolitical tensions. The coming round may prove decisive in determining whether India and the US can move past trade friction towards a more stable economic partnership.
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