U.S.-India Trade Relations: From Tariffs to Agreements

U.S. President Donald Trump announced a new trade deal with India, urging New Delhi to cease purchasing Russian oil. The deal emerges after Trump had imposed escalating tariffs on Indian goods, reaching 50% at one point, to pressure India over their oil imports from Russia.

In a significant development in U.S.-India trade relations, President Donald Trump on Monday revealed a new trade agreement with India. This deal includes India's commitment to halt its purchase of Russian oil and explore more imports from the U.S. and potentially, Venezuela.

The announcement follows a series of tariff escalations initiated by Trump, starting with a 26% 'reciprocal tariff' on Indian goods by April 2025. Trump's global trade strategy had initially sparked tensions with New Delhi by reciprocity measures.

By August 7, 2025, tariffs on Indian imports were driven to an unprecedented 50% as a direct reaction to India's continued oil trade with Russia. The U.S.'s tariffs on Indian goods were the highest among its trade partners, underscoring the intensity of trade negotiations between the two nations.

(With inputs from agencies.)