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US–India Trade Tensions: From 26% to 50% to 10% – A Complete Timeline of Trump’s Tariffs on Indian Exports

US–India Trade Tensions: From 26% to 50% to 10% – A Complete Timeline of Trump’s Tariffs on Indian Exports

In a significant development that has reshaped India–US trade relations over the past year, the United States under former President Donald Trump altered tariff duties on Indian imports multiple times, culminating in a recent reset to a 10 % global levy. The tariff saga began in early 2025 when the US imposed a 26 % total tariff on Indian goods on April 2 — comprising a baseline 10 % duty plus an additional reciprocal component aimed at balancing trade deficits.

Following intense negotiations and temporary suspensions, Washington further raised levies. On August 7, 2025, the duty was increased to 25 %, and by August 27 it doubled to 50 % after an added 25 % penalty linked to India’s purchase of Russian oil, marking the peak of trade tensions.

Diplomatic engagement in late 2025 and early 2026 saw progress toward a bilateral trade deal that briefly reduced additional tariffs to 18 % by February 2, 2026, offering relief to exporters.

The legal landscape shifted again on February 20, 2026, when the US Supreme Court struck down broad tariff powers under the International Emergency Economic Powers Act, invalidating many of the earlier reciprocal duties. In response, the Trump administration invoked alternative legal authority to impose a temporary 10 % global duty on most imports, including from India, effective February 24, 2026. The future of tariff rates for Indian exports now hinges on the formal signing and implementation of the India–US trade deal.

The series of tariff changes reflects ongoing protectionist trends in US trade policy as well as persistent negotiation efforts by India to mitigate adverse impacts on its export sectors. 

This news is for information only and is not investment advice. Please do your own research before making investment decisions.