From tariff shock to trade deal: The timeline of US–India pact – The Times of India
US President Donald Trump on Monday announced a trade deal with India, months after Washington imposed steep tariffs of up to 50 per cent on Indian goods, including penalties linked to New Delhi’s purchase of Russian crude. Announcing the agreement on his social media platform Truth Social, Trump said the US would cut reciprocal tariffs on Indian exports to 18 per cent from 25 per cent and claimed that India had agreed to lower tariffs on US goods and halt Russian oil imports. Prime Minister Narendra Modi acknowledged the tariff reduction, calling it a boost for “Made in India” products, but New Delhi has not commented on the oil-related claims made by the US president.
The deal was announced after months of negotiations. Here’s a look at the key moments that led to deal announcement on February 2The ambition Is Set (February 13, 2025)Prime Minister Narendra Modi and US President Donald Trump agreed to deepen bilateral trade ties, setting a target of more than doubling trade to $500 billion by 2030. The two sides announced plans to negotiate the first tranche of a multi-sector Bilateral Trade Agreement by fall 2025.Negotiations begin — then stall (March–April 2025)Commerce Minister Piyush Goyal made multiple visits to Washington, engaging with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. But on April 2, Trump imposed a 26 per cent import duty on Indian goods, jolting talks. Though the tariff was suspended for 90 days on April 9, uncertainty lingered.Formal talks progress (April–June 2025)India’s chief negotiator Rajesh Agrawal led delegations to Washington, while a US team headed by Additional USTR Brendan Lynch visited India. Negotiators agreed on the framework of talks spanning 19 chapters, including tariffs, market access, digital trade, and regulatory barriers.Deadline pressure (June 2025)With the July 9 tariff deadline approaching, India sent another delegation to Washington to bridge differences. Days later, Trump publicly said the US was headed towards a “very big” trade deal with India, signalling political intent even as differences remained.
Tariff escalation (July–August 2025)On July 31, the US announced a 25 per cent duty on Indian goods, followed days later by an additional 25 per cent penalty tariff linked to India’s continued purchase of Russian oil. Tariffs on most Indian exports rose to 50 per cent, sharply raising the stakes.Backchannel push to salvage talks (September–December 2025)After months of escalation, negotiators returned to the table. USTR officials visited India in September, followed by high-level engagements in New York and Washington. By December, six formal rounds of talks had been completed, with Deputy USTR Rick Switzer leading a delegation to New Delhi.The Deal is sealed (February 2026)In January, both sides signalled momentum, with Goyal saying India was working to close the “father of all deals.” On February 2, Trump announced that Washington would reduce the reciprocal tariff on Indian goods to 18 per cent following a phone call with Modi, sealing the agreement.