India–US Trade Deal Timeline (Pic:X)
India-US Trade Deal: From Tariff Tensions to Trade Triumph: The Yearlong Journey
The trade agreement between India and the United States reached its conclusion through a handshake on February 2, 2026, as the moment proved to be the perfect occasion for such an event. The main achievement of the year occurred when Prime Minister Narendra Modi and US President Donald Trump spoke on the phone after diplomats encountered difficulties during their yearlong tariff and trade discussions. The main news story reports that US tariff rates on Indian imports experienced a dramatic decrease from their previous level of 50% to 18%.
What new developments will happen now?
The agreement functions as a relief for Indian exporters who experienced multiple months of uncertainty, enabling them to operate without restrictions. The two largest democracies in the world demonstrate their restored relationship through this evidence, which serves as a mark of confidence for investors. Global markets monitoring events around the world receive their answer regarding the value of the previous tension.
The deal progressed through its entire development process, starting with tariff threats and halted negotiations, and reached its conclusion through various compromises and adjustments until the two parties shook hands to establish a new beginning.
Feb 13, 2025: The agreement between Prime Minister Modi and President Trump sets an ambitious objective to double United States–India trade, which currently stands at $250 billion, aiming for $500 billion by 2030. The first stage of the Bilateral Trade Agreement, covering multiple sectors, was scheduled to begin after the original date of Fall 2025.
Apr 2, 2025: The US government imposes a 26% reciprocal tariff on specific Indian products, which includes a 10% baseline tariff, as part of its worldwide “liberation day” trade initiative. Market news reported intense financial activity as a result.
Apr 9–10, 2025: The new tariffs are paused for 90 days by President Trump, though the 10% baseline duty remains in effect. This pause provides a temporary breather but does not end trade negotiations.
Jun 20, 2025: Prime Minister Modi cancels his Washington trip to fulfill commitments in Odisha. Even global trade superheroes have local duties to perform!
July 31, 2025: Negotiations reach an impasse as Trump imposes a 25% tariff on Indian imports and threatens penalties over India’s continued Russian oil purchases. Markets brace for disruption.
August 6–7, 2025: Tariffs hit a record 50%, comprising a 25% baseline and a 25% Russian oil penalty, the highest ever levied on a US trade partner. Indian exporters face financial losses, while global trade observers closely monitor the unfolding situation.
September–October 2025: Negotiations between India and the US resume. India reduces Russian oil imports by approximately 31–38% to create a “landing ground” for the trade deal.
December 2025: The initial deadline for finalizing the agreement is missed. Despite this, both parties show positive signs of reaching a deal, signaling progress toward a resolution.
(This article has inputs for the timeline from ANI, PTI and Reuters)
Also Read: From Uncertainty To Opportunity: India–US Trade Deal Clears Trust Gap, Lifts FII Sentiment
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
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