Overview

• Trump cited India’s high import duties and energy and defence ties with Russia when announcing the 25% tariff and unspecified penalty effective August 1.
• India’s commerce ministry said it is studying the implications and remains committed to a fair, balanced bilateral trade deal while protecting farmers, entrepreneurs and MSMEs.
• U.S. negotiators have pressed India to open agriculture, dairy, remanufactured goods, genetically modified feed and digital trade sectors.
• Experts including a CSIS fellow describe the tariffs as a temporary negotiation tactic rather than a permanent policy shift.
• Both countries plan a sixth round of talks starting late August to conclude the first phase of a broader agreement by autumn 2025.