Timeline: India–US Trade Agreement

From renewed engagement to tariff escalations and intensive negotiations, below is a chronological summary of developments that led to the announcement of the India–US trade agreement.

February 13, 2025

Prime Minister Narendra Modi and US President Donald Trump issued a joint statement committing to deepen the US–India trade relationship. They set a target to more than double bilateral trade to USD 500 billion by 2030 (from about USD 191 billion at the time) and agreed to negotiate the first tranche of a multi‑sector Bilateral Trade Agreement (BTA) by fall 2025.

March 4–6, 2025

Commerce and Industry Minister Piyush Goyal visited Washington, D.C., and held meetings with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick to advance talks.

April 2, 2025

President Trump announced an additional import duty of 26% on Indian goods (a 10% baseline tariff plus a 16% reciprocal tariff).

April 9, 2025

The US suspended the 26% reciprocal tariff on Indian goods for 90 days, extending relief until July 9, 2025.

April 23–29, 2025

Indian chief negotiator Rajesh Agrawal traveled to Washington for the first in‑person meeting with US counterparts. Delegations discussed terms of reference across 19 chapters, including tariffs, non‑tariff barriers and customs facilitation.

May 17–20, 2025

Piyush Goyal made a follow‑up visit to Washington to continue high‑level engagement with USTR Greer and Commerce Secretary Lutnick.

June 4–10, 2025

A US delegation led by Additional US Trade Representative Brendan Lynch visited India for a week of discussions on market access, digital trade, customs facilitation, sanitary and phytosanitary measures, technical barriers to trade, and legal issues.

June 26, 2025

An Indian negotiating team led by Rajesh Agrawal returned to Washington for another round of talks aimed at narrowing differences before the July 9 deadline.

June 27, 2025

President Trump publicly said the US was heading toward a “very big” trade deal with India.

July 31, 2025

The US announced a 25% duty on Indian imports to take effect August 7, 2025 (9:30 am IST).

August 6, 2025

President Trump imposed an additional 25% tariff on Indian goods as a penalty over India’s continued purchase of Russian oil. With limited exemptions, the combined tariff on most Indian goods rose to 50%, scheduled to take effect August 27, 2025.

September 16, 2025

Officials from the Office of the United States Trade Representative held discussions in India to review components of the trade pact and agreed to intensify negotiating efforts.

September 22, 2025

Minister Piyush Goyal visited New York for trade talks, accompanied by Rajesh Agrawal.

October 15–17, 2025

The Indian negotiating team was in Washington for further rounds. By this time, six formal rounds of talks had taken place.

December 10, 2025

A US delegation led by Deputy US Trade Representative Rick Switzer held two days of talks in New Delhi with Indian counterpart Rajesh Agrawal.

January 12, 2026

US Ambassador to India Sergio Gor said both sides were actively engaged in efforts to finalize a trade deal.

January 31, 2026

When asked about progress, Minister Goyal said India was working to close the “father of all deals” with the US quickly, noting productive negotiations.

February 2, 2026

Following a phone call between President Trump and Prime Minister Modi, India and the US announced they had agreed on a trade deal under which the US would reduce the reciprocal tariff on Indian goods to 18% from 25%, according to the US president.

Brief background

During President Trump’s first term (2017–2021) India and the US discussed a smaller trade package; talks were held in multiple rounds in July 2018 and September 2019 but failed to produce an agreement because of differences on agriculture, digital taxes and tariffs. The subsequent Biden administration (2021–2025) did not pursue a free trade agreement. The 2025–2026 engagements renewed momentum and culminated in the announced bilateral deal.