From Trade Deal To Tariff War: How US-India Talks Collapsed As Trump Doubled Duties To 50% – Full Timeline
The United States has doubled tariffs on Indian goods to as much as 50%. | Image:
AP/ANI
New Delhi: The United States has doubled tariffs on Indian goods to as much as 50%, escalating trade tensions between the two strategic partners after months of failed negotiations.
The move, effective from August 27, 2025, highlights how a relationship once seen as ripe for a landmark trade agreement has instead unravelled over disagreements on agriculture, dairy, and India’s decision to continue purchasing Russian oil.
The escalation follows a year of high-level exchanges between Washington and New Delhi, which initially raised hopes of a deal.
Here’s the full timeline of the events:
February
In February, Prime Minister Narendra Modi and President Donald Trump agreed to work toward a limited trade pact by fall 2025 and expand bilateral trade to $500 billion by 2030.
India also pledged to increase its energy purchases from the US, signalling goodwill.
March
March saw Commerce Minister Piyush Goyal travel to Washington for talks with Commerce Secretary Howard Lutnick and US Trade Representative Jamisen Greer, followed by US officials visiting Delhi.
Optimism remained high, even as the USTR’s annual report criticised India’s tariffs, data laws, and patent issues.
April & May
In April, Vice President JD Vance visited India and both sides finalised the framework for bilateral negotiations. Indian officials suggested that a deal could be signed before a July 9 deadline.
By May, Goyal and lead negotiator Rajesh Agrawal were back in Washington, and New Delhi publicly expressed confidence in a breakthrough.
June
Momentum appeared strong in early June, with Lutnick and Trump both signaling that a deal was close. But optimism soon faded. Disagreements over import duties on farm goods resurfaced, leading to a stalemate.
PM Modi’s decision to decline an invitation to Washington, announced at a rally in Odisha on June 20, underscored the growing friction.
July
By July, talks had stalled. Goyal declared that India would not pursue agreements just to meet deadlines, stressing that national interest would remain paramount.
Another round of talks in mid-July failed to resolve differences. Meanwhile, PM Modi told parliament that “no world leader asked us to stop the operation,” dismissing Trump’s claims of mediating peace following a flare-up with Pakistan.
On July 31, Trump announced a 25% tariff on Indian imports, warning of an additional 25% levy if India did not halt Russian oil purchases.
The first round of tariffs took effect on August 7. PM Modi responded firmly, stating India would not compromise farmers’ interests despite the “heavy price” of US tariffs.
August
Tensions deepened after the US cancelled a planned late-August trade delegation to New Delhi. White House adviser Peter Navarro accused India of funding Moscow’s war in Ukraine through continued oil imports.
On August 27, Washington followed through with the second round of tariffs, raising duties on Indian goods to 50%—among the highest levels imposed on any US trade partner.
New Delhi called the move “unfair” and vowed to defend its economic and strategic interests. PM Modi, preparing for his first visit to China in seven years, sought to signal that India would diversify its partnerships amid mounting pressure from Washington.