Donald Trump's additional 25 per cent tariff on India have officially taken force, doubling duties on Indian imports to 50 per cent from Wednesday, August 27, after weeks of negotiations that have failed yield favourable results for New Delhi, which has hit out at the US administration for the "unjustified" levies.
The additional 25 per cent tariffs, imposed by US President Donald Trump citing Russian oil purchase, make India levies among the highest in the world, on par with Brazil and China. Follow tariff news live updates
Here’s how US-India trade story unraveled | Timeline
FEBRUARY 2025
– Prime Minister Narendra Modi and US President Trump agree to aim for a limited trade deal by fall and grow bilateral trade to $500 billion by 2030. PM Modi was in Washington in February to meet Trump.
– India pledged to increase US energy imports.
MARCH
– Trade minister Piyush Goyal visits Washington for talks with commerce secretary Howard Lutnick and United States Trade Representative (USTR) Jamisen Greer.
– US officials later visit Delhi.
{{/usCountry}}– US officials later visit Delhi.
{{/usCountry}}– The USTR annual report flags India's tariffs, data policies, and IP barriers.
– Both sides claim talks are “progressing well.”
APRIL
– US Vice President JD Vance visits India.
– Framework for trade talks was said to have been finalised.
– There were speculation that a deal could be signed before July 9.
MAY
– Piyush Goyal and India’s top negotiator Rajesh Agrawal return to Washington for further rounds, with hopes for a breakthrough remaining high.
JUNE
– US commerce secretary Lutnick says a deal is close.
– Donald Trump promises a “big trade deal” soon.
– But by late June, Indian officials signal a deadlock, particularly over agriculture and dairy tariffs.
– PM Modi says he declined an invitation from Donald Trump for a dinner meeting, prioritising his visit to Odisha.
JULY
– Indian delegation returns home.
– Piyush Goyal says India won’t rush into a deal for deadlines’ sake.
– Talks, fifth round, resume mid-July but see no breakthrough.
– PM Modi tells Parliament no global leader asked India to stop operations in a swipe at Trump’s earlier repeated claim on mediating in conflict with Pakistan citing trade talks.
– On July 31, Trump announces 25 per cent tariffs on Indian goods will take effect from August – plus “a penalty” on India for Russian oil purchase.
AUGUST
– August 7: First wave of tariffs (25 per cent) kicks in and Donald Trump announces 25 per cent additional tariffs for Russian oil buys.
– PM Modi says India won’t compromise farmers “despite a heavy price.”
– India, on same day, slams US tariff policy as “unfair and unjustified” and tied to unrelated foreign policy issues.
– India announces PM Modi’s first China visit in 7 years.
– A planned US trade delegation visit (August 25–29) is cancelled, as per a Reuters report.
– August 22 White House adviser Peter Navarro accuses accuses India of “cozying up” to Chinese President Xi Jinping, as he lashed out at New Delhi for still continuing to do oil trade with Russia.
August 27: A second 25 per cent tariff takes effect, bringing total levies on Indian goods to 50 per cent – among the highest ever for a US trade partner.