Today on India Tariff News and Tracker, we’re diving deep into the latest developments shaping the US-India trade relationship, with tariffs making major headlines as we approach the end of 2025.
Nearly a tenth of India’s total exports to the United States, representing about $8.3 billion in trade, remain under threat from tariffs imposed under US law. According to Moneycontrol, even as the Supreme Court reviews the legality of former President Donald Trump’s controversial tariffs, duties levied under Section 232 of the US Trade Expansion Act of 1962 are expected to stick around. These Section 232 tariffs—targeting imports considered critical to US national security, such as steel, aluminium, automobiles, timber, copper, and machinery—have a significant impact on India, which relies heavily on the American market for these products. Steel, aluminium, and automobiles together make up more than 85% of the Indian exports still at risk, and the US remains India’s single largest importer for many of these sectors.
Trade negotiations between India and the US remain active. The Economic Times reports that Donald Trump, speaking at a White House event this week, hinted that a visit to India could happen next year. He called his relationship with Prime Minister Narendra Modi strong and said that talks on a comprehensive trade agreement are “going great.” Notably, high-level negotiations to double bilateral trade volumes—from $191 billion to a projected $500 billion by 2030—have already completed five rounds since March, with an initial deadline to reach a deal set for fall 2025.
Progress toward a new deal is seen as vital because US tariffs on Indian shipments currently stand as high as 25%—with a further penalty of 25% tied to India’s Russian oil purchases. Trump continues to press India to decrease its dependence on Russian energy and pivot toward the US and allied suppliers.
In the meantime, these tariffs are having a very real impact at the consumer level. The Economic Times recently highlighted how Indian restaurants and retailers across New York are struggling with increased prices for spices, rice, and pulses due to these heightened tariffs. This spike in costs is squeezing profit margins and forcing business owners to make tough decisions about passing costs along to customers.
As of today, there’s still no breakthrough, but diplomats on both sides remain optimistic. Commerce Minister Piyush Goyal says talks are “going on very well,” though the issues at stake—ranging from tariffs to technology transfer to visa policy—remain complex and sensitive. Both nations appear committed to finding common ground for a sustainable long-term partnership.
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