India-US trade

India and the United States have been negotiating a trade deal since February 2025. A framework was announced in February 2026, but the first tranche is not in force and Finance Minister Nirmala Sitharaman said on 5 October that talks had reached a plateau, Reuters reported. A US law signed on 18 September now hangs over the talks: it lets the President impose tariffs of up to 100% on the biggest buyers of Russian oil and gas, including India.

Where things stand

In force (verified): a 10% US Section 301 duty on Indian goods since 24 July 2026, on top of normal duties and with exclusions, set after a US forced-labour investigation. Goods under US Section 232 duties, such as steel and aluminium, are exempt from it.

Not in force: the 18% reciprocal rate in the February framework, which never took effect after the US Supreme Court struck down the reciprocal tariffs on 20 February; the first tranche of the deal; and any tariff under the Russia sanctions law, which authorises but does not impose one.

Not confirmed: whether a second US probe, into industrial excess capacity, has led to a tariff on India.

India-US trade, 2025 to 2026

1. Feb 2025The two countries begin seeking a trade deal
2. 6 Feb 2026Joint statement on a framework; US says reciprocal tariff will fall from 25% to 18%
3. 20 Feb 2026US Supreme Court strikes down reciprocal tariffs; a temporary 10% duty follows from 24 Feb
4. 24 Jul 202610% Section 301 duty on Indian goods takes effect
5. 29 Jul 2026Goyal says first tranche will operate once India regains an edge over competitors
6. 18 Sep 2026Trump signs Russia sanctions law allowing tariffs of up to 100%
7. 5 Oct 2026Sitharaman says talks have reached a plateau

Key numbers

$77.52 bn

$86.51 bn

$42.20 bn

$45.33 bn

Exports 2023-24Exports 2024-25Imports 2023-24Imports 2024-25

India's goods trade with the US. US$ billion, financial years

Item	Value
Exports 2023-24	$77.52 bn
Exports 2024-25	$86.51 bn
Imports 2023-24	$42.20 bn
Imports 2024-25	$45.33 bn

India-US trade in figures

• $131.84 bnbilateral goods trade, 2024-25
• $41.18 bnIndia's goods trade surplus with the US, 2024-25
• $42.79 bnIndian goods exports to the US, April-August 2026 ($40.39 bn a year earlier)
• $241 bnrecord bilateral trade cited by Foreign Secretary Vikram Misri (period and scope not stated)

Misri said in April that it was the fourth consecutive year the US had been India’s largest bilateral trading partner. He said both sides aim to double bilateral trade to $500 billion by 2030.

Key questions

What is holding up the deal? Commerce Minister Piyush Goyal said in July that the first tranche will come into operation once the US ensures India has a comparative advantage over competitors, PTI reported.

Is a 100% tariff in force? No. The law allows the US President to set a tariff of up to 100% on the five largest buyers of Russian oil and gas. None had been reported as imposed by 5 October.

How has India responded to the law? The MEA said on 17 September that India will take necessary measures to protect its trade and economic interests and will keep ensuring energy security “through diversified sourcing and on the basis of evolving market dynamics”, PTI reported.

Are exports to the US falling? Not in the latest figures. Goods exports to the US rose to $42.79 billion in April-August from $40.39 billion a year earlier, Reuters reported.