U.S.–India 2025: Tariff Fight Hardens as Defense Pact Sealed and Trade Talks Edge Forward

Overview

• Negotiators closed December with progress on a Bilateral Trade Agreement, as U.S. officials described India’s latest offer as one of its best.
• The White House levied reciprocal duties on India in 2025—26% announced in April and an additional 25% tied to Russian oil trade in August—pushing certain effective rates toward 50%.
• Despite commercial friction, the two governments signed a 10‑year defence framework in October, formalizing long‑term security cooperation.
• The administration imposed a $100,000 fee on new H‑1B visas, alarming Indian professionals and drawing criticism from some U.S. lawmakers.
• Core tensions persisted over energy and narrative control, with U.S. pressure on India’s Russian oil purchases and New Delhi rejecting the president’s claim that he brokered the May India–Pakistan ceasefire.