financetom
Business
financetom
/
Business
/
How floundering India-US talks led to high tariffs
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
How floundering India-US talks led to high tariffs
Aug 26, 2025 9:19 PM

NEW DELHI (Reuters) -U.S. President Donald Trump's doubling of tariffs on goods from India to as much as 50% took effect as scheduled on Wednesday, escalating tensions between the world's two largest democracies and strategic partners.

Below is a timeline of how India, once seen as a frontrunner for a U.S. trade deal, ended up facing steep tariffs after both sides failed to resolve disputes over agriculture and dairy, and New Delhi resisted pressure to halt Russian oil purchases.

FEBRUARY

Indian Prime Minister Narendra Modi agrees to work toward a limited trade deal by fall 2025 with the United States and expand the bilateral trade deal to $500 billion by 2030. He also pledged to boost energy purchases from the U.S.

MARCH

Trade Minister Piyush Goyal visits Washington to meet Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamisen Greer. Later in March, U.S. officials visit Delhi for talks.

India says negotiations are progressing well.

USTR annual report flags India's high tariffs, non-tariff barriers, data laws, and patent issues.

APRIL

During Vice President JD Vance's visit, both sides finalise the terms of reference for bilateral talks.

Indian officials say a deal could be signed before the July 9 deadline.

MAY

Goyal travels to Washington with lead negotiator Rajesh Agrawal for trade talks. India expects a favourable outcome is near.

JUNE

U.S. Commerce Secretary Howard Lutnick on June 3 says the U.S. and India are making progress and a deal could be finalised soon.

Trump says a "big" trade deal with India is coming soon.

Indian officials tell Reuters that trade talks have hit a roadblock over disagreements on import duties largely over farm goods, dashing hopes of a deal ahead of July 9.

At a rally in the eastern Indian state of Odisha on June 20, Modi says he declined Trump's invitation to Washington.

JULY

Delegation returns to New Delhi without a breakthrough.

Trade Minister Piyush Goyal says on July 4 that India will not do trade deals to meet deadlines and national interest will be "supreme."

Indian trade delegation travels to Washington again in mid-July for the fifth round of talks, aiming to break the deadlock.

Modi responds in Parliament about ceasefire with Pakistan: "No world leader asked us to stop the operation."

No high-level outreach from Indian leadership.

On July 31, Trump announces to impose 25% tariffs on Indian imports, warns of further 25% additional tariffs for buying Russian oil.

AUGUST

On August 7, 25% tariffs on Indian goods come into effect. Modi says India will not compromise farmers' interest despite "a heavy price".

New Delhi calls tariffs over Russian oil purchases "unfair", and vows to defend national interests.

Modi's first China visit in seven years is announced.

U.S. trade delegation trip to New Delhi scheduled for August 25-29 is cancelled.

White House adviser Peter Navarro says India's oil buys funds Moscow's war in Ukraine.

Additional 25% tariff on Indian goods comes into effect on August 27, lifting duties to 50%, among the highest for U.S. trade partners.

(Reporting by Manoj Kumar; Editing by Lincoln Feast.)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved