New Delhi (Economy India): India-US trade relations have gone through a series of tariff announcements, suspensions, negotiations and policy reversals since April 2025, with trade measures increasingly linked to both bilateral economic concerns and India’s purchases of Russian energy.
The latest development came in September 2026, after the US Congress passed legislation giving President Donald Trump authority to impose tariffs of up to 100 per cent on countries purchasing Russian oil and gas. India and China are among the major Russian energy buyers that could potentially be affected.
The following is a chronology of major tariff-related developments affecting Indian goods entering the United States.
April 2, 2025: US Announces Reciprocal Tariffs
On April 2, 2025, the Trump administration announced its broad reciprocal tariff programme, including a baseline tariff and additional country-specific duties.
India was initially listed for a 26 per cent additional tariff in the US announcement, comprising a 10 per cent baseline component and a 16 per cent reciprocal component. Indian government records at the time cited a country-specific additional duty of 26 per cent in the US order.
The duties were imposed over and above existing Most Favoured Nation (MFN) tariffs.
April 9, 2025: Reciprocal Tariff Suspended
The US subsequently suspended the additional 16 per cent reciprocal tariff on Indian goods for 90 days.
During the suspension period, the 10 per cent baseline tariff continued to apply.
The pause provided additional time for Washington and New Delhi to negotiate a broader bilateral trade arrangement.
July 31, 2025: 25% Tariff Announced
On July 31, 2025, the US announced that a 25 per cent tariff would apply to imports from India from August 7.
This marked another escalation in the tariff dispute as negotiations between the two countries continued.
August 6, 2025: Additional 25% Tariff Over Russian Oil
On August 6, 2025, President Trump signed an order imposing an additional 25 per cent tariff on Indian goods, citing India’s continued purchases of Russian oil.
The additional duty was scheduled to take effect from August 27, taking the additional tariff burden on many Indian imports to 50 per cent, apart from existing sector-specific duties.
August 27, 2025: 50% Tariff Takes Effect
From August 27, 2025, Indian goods faced a combined additional tariff rate of 50 per cent under the US measures then in force.
The tariff structure consisted of the 25 per cent reciprocal tariff and an additional 25 per cent levy linked to Russian oil purchases.
The measures placed significant pressure on Indian exporters across several sectors.
February 2026: Russia-Linked Tariff Removed
A major change came in February 2026.
The US removed the additional 25 per cent tariff linked to India’s Russian oil purchases, while Washington and New Delhi announced a framework for an interim trade agreement.
The United States also agreed to reduce the reciprocal tariff applicable to Indian goods to 18 per cent, subject to the framework announced by both countries.
The February 6, 2026 US-India joint statement said the two countries would continue negotiations towards a broader Bilateral Trade Agreement.
February 20, 2026: US Supreme Court Strikes Down Reciprocal Tariff System
The US Supreme Court subsequently struck down the reciprocal tariff system that had been introduced under the earlier executive order.
This created another significant shift in the US tariff framework and was followed by further changes in the administration’s tariff policy.
February 24, 2026: New 10% Tariff Announced
Following the Supreme Court ruling, the US announced a 10 per cent tariff on imports for a temporary period.
The tariff environment remained uncertain as the administration and businesses dealt with the legal and policy implications of the changes.
May 2026: Court Challenge to 10% Tariff
In May 2026, a US federal court struck down the 10 per cent tariff in a ruling that directly applied to three plaintiffs, including the state of Washington and two businesses.
The administration was expected to appeal, leaving the broader tariff framework subject to further legal developments.
September 2026: New Russia-Related Tariff Powers
The latest development came in September 2026, when the US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act after it had cleared the Senate.
The legislation gives the US president authority to impose tariffs of up to 100 per cent on countries that continue to purchase Russian oil and gas. India and China are among the major countries potentially covered by the measure.
The legislation also contains provisions allowing the president to waive sanctions when considered necessary in the US national interest.
India Raises Concerns Over Impact on Bilateral Ties
India has said that new US measures targeting purchases of Russian oil could affect bilateral relations.
According to Reuters, India’s foreign ministry said on September 17 that the new measures could have an impact on India-US ties. The United States remains India’s largest export destination, with Indian goods exports to the US reaching $42.79 billion during April-August 2026, compared with $40.39 billion a year earlier.
What the Tariff Timeline Shows
The tariff relationship between India and the US has moved through several distinct phases — from the reciprocal tariff announcements of April 2025 and the subsequent 25 per cent and 50 per cent measures, to the February 2026 trade framework and the latest Russia-related tariff powers.
The February 2026 US-India framework envisaged an 18 per cent reciprocal tariff rate on specified Indian goods and further negotiations on market access, rules of origin and non-tariff barriers.
However, the September 2026 legislation introduces another layer of uncertainty because its tariff authority is connected to purchases of Russian energy rather than solely to bilateral trade policy.
For Indian exporters, the final impact will depend on how the new authority is implemented, which countries and products are covered, and whether further trade negotiations between New Delhi and Washington lead to exemptions or revised tariff arrangements.
(Economy India)
