From Trade War to Trade Deal (2025-2026): UPSC Current Affairs Story Arc

Overview

This arc tracks the volatile trade relationship between India and the US from early 2025 to 2026. Initiated by the US declaring a national emergency and imposing 26% additional duties, the conflict escalated through retaliatory tariffs on auto parts and a massive 50% peak US tariff linked to India's Russian oil purchases. India leveraged the WTO dispute mechanism while simultaneously conducting intense bilateral negotiations led by Commerce Minister Piyush Goyal. The resolution arrived in early 2026 through an 'Interim Trade Agreement'—a classic early harvest deal where India pivoted away from Russian oil and reduced tariffs on US agricultural goods in exchange for the US removing punitive duties and lowering reciprocal rates to 18%.

How This Story Evolved

US imposes emergency tariffs (Apr '25) → India retaliates on auto parts (July '25) → India challenges peak 50% tariffs at WTO (Sept '25) → India offers concession on Russian oil penalty (Dec '25) → Framework reached (Jan '26) → US resets tariffs/removes penalty (Feb 4 '26) → Detailed Agreement Announced (Seed) → Deal confirmed/analyzed (Feb 11 '26)

1. 2025-04-02: India-US Trade Relations: Tariffs and Trade Deal
   More details

   UPSC Angle: US imposed additional import duty of 26% on Indian goods.

   Key Facts:

   • US President Donald Trump announced an additional import duty of 26% on Indian goods on April 2, 2025.
   • US to bring down the reciprocal tariff on Indian goods to 18%.
   • India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products.
   • The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025.
   • India removed its 6% equalisation levy on digital advertising services effective April 1, 2025, through the Finance Bill 2025.
2. 2025-07-04: India Proposes Retaliatory Tariffs on US Auto Imports at WTO
   More details

   UPSC Angle: India proposes retaliatory tariffs on US auto imports at WTO.

   Key Facts:

   • India proposed retaliatory tariffs on US automobile parts imports at the WTO on July 4, 2025.
   • The US imposed a 25% tariff on imports of passenger vehicles, light trucks, and certain automobile parts originating in India on March 26, 2025.
   • US tariffs took effect on May 3, 2025.
   • India's retaliation targets US exports worth approximately $2.895 billion annually to India.
   • The suspension of concessions is expected to result in $723.75 million in additional duties on US products.
   • India invoked Article 8.2 of the Safeguards Agreement.
3. 2025-09-24: India-US Trade Dynamics
   More details

   UPSC Angle: India filed WTO challenge against US tariffs.

   Key Facts:

   • US imposed 50% tariffs on Indian exports in August 2025
   • Tariffs included 25% reciprocal tariff and 25% penalty on Russian oil purchases
   • Commerce Minister Piyush Goyal leading trade talks in Washington
4. 2025-12-13: India Offers 'Final' Trade Deal to U.S., Focus on Tariff Removal
   More details

   UPSC Angle: India offers 'final' trade deal to U.S., focusing on tariff removal.

   Key Facts:

   • India offered U.S. a revised “final” trade deal
   • Priority is the removal of 25% tariffs linked to Russian oil
   • India offered to “immediately” remove tariffs on walnuts, almonds, apples, and industrial goods
   • Sujit Ghosh, Joint Secretary of the East Asia Division of the Ministry of External Affairs (MEA)
   • Liu Jinsong, Director-General of the Department of Asian Affairs of the Chinese Foreign Ministry
5. 2026-01-06: India-U.S. reach framework for trade agreement
   More details

   UPSC Angle: India-U.S. reach framework for trade agreement.

   Key Facts:

   • Parties: United States and India
   • Agreement: Interim Agreement regarding reciprocal and mutually beneficial trade
   • Key terms: India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products
6. 2026-02-04: US-India Tariff Reset
   More details

   UPSC Angle: US lowers tariff on Indian goods to 18% from 50%.

   Key Facts:

   • US lowered tariff on most Indian goods to 18% from 50%
   • US removed 25% tariff on India's purchases of Russian oil
   • India committed to reduce Russian oil purchases
   • US reduced reciprocal tariff to 18%
   • Original tariff was nearly 50% (including punitive duties)
   • Additional 25% punitive duty removed
   • India may purchase up to USD 500 billion worth of US products
   • Bilateral trade (FY25): USD 132 billion
   • India's trade surplus: USD 40.82 billion
   • US is the 3rd largest investor in India with cumulative FDI of USD 70.65 billion (2000–2025)
   • India committed to $100 bn/year US imports for 5 years
   • The US lowered the reciprocal tariff from 25% to 18%
   • The additional 25% punitive duty imposed in August 2025 over India's Russian oil purchases has been removed
   • Effective tariff burden reduced from ~50% to 18%, restoring export competitiveness
7. 2026-02-09: India-US Interim Trade Agreement Framework
   More details

   UPSC Angle: India and US announce framework for interim trade agreement.

   Key Facts:

   • The U.S.–India Interim Trade Agreement is designed to deliver early harvest commitments on tariffs, market access, and non-tariff barriers.
   • India will eliminate or reduce tariffs on U.S. industrial goods and a wide range of agricultural products, including ethanol by-products (DDGs), oilseeds, fruits, nuts, wine, and spirits.
   • The U.S. will apply a reciprocal tariff rate of 18% initially on select Indian exports.
   • United States–India Interim Trade Agreement announced
   • Aims to establish reciprocal and balanced trade based on mutual interests
   • India will eliminate or reduce tariffs on U.S. industrial goods and a wide range of agricultural products
   • U.S. will apply a reciprocal tariff rate of 18% initially on select Indian exports
   • US will remove tariffs on generic pharmaceuticals; gems and diamonds; selected aircraft and aircraft parts
   • India will receive ally-equivalent tariff treatment in certain aviation sectors, and get a preferential quota for auto parts at lower tariff rates
   • India agreed to tackle import licensing delays; standards-related restrictions; and barriers affecting medical devices, ICT goods, food and agricultural products
   • Talks to align with US or international standards to conclude within six months
   • Agreement allows India to import cutting-edge GPUs without such limits
   • India has offered a tax holiday until 2047 for foreign companies
   • Sector expected to reach $100 billion in bilateral trade
   • India will remove or reduce tariffs on all industrial goods from the U.S.
   • India will reduce tariffs on dried distillers' grains, red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits imported from the U.S.
   • India and the United States will set clear rules of origin.
   • Commerce Minister Piyush Goyal stated India will fully protect sensitive farm and dairy products like maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, certain vegetables, and meat.
   • The United States will reduce tariffs to 18% on several types of goods imported from India.
   • Both countries will work towards completing a more detailed Bilateral Trade Agreement (BTA).
   • Both countries agreed to strengthen cooperation on economic security to improve supply chains and support innovation.
   • United States–India Interim Trade Agreement
   • Temporary, outcome-oriented trade framework
   • Aims for early harvest commitments on tariffs, market access, and non-tariff barriers
   • India will eliminate/reduce tariffs on U.S. industrial goods and agricultural products
   • Pathway to tariff removal on priority sectors (e.g., generic pharmaceuticals, gems & jewellery, aircraft parts)
   • India has offered a tax holiday until 2047 for foreign companies in data centers
   • Expected $200 billion investment in data center sector
   • Bilateral trade in electronics sector expected to reach $100 billion
8. 2026-02-14: India-U.S. Trade Agreement Discussions and Implications
   More details

   UPSC Angle: India will receive similar benefits on textile exports under U.S. trade agreement.

   Key Facts:

   • Piyush Goyal
   • textile exports
   • interim trade agreement
   • United States
   • Bangladesh
   • Bangladesh–U.S. trade deal
   • tariffs on Bangladesh's exports to the U.S. will be reduced to 19% overall
   • $500 billion worth of American goods
9. 2026-02-14: India Creates 44 Tariff Lines to Map US Market Access
   More details

   UPSC Angle: New tariff lines to track US market access under trade agreement.

   Key Facts:

   • 44 new tariff lines
   • Union Budget 2026-27
   • Track imports from US
   • Pecan nuts
   • Fresh and dried cranberries
   • Blueberries
   • Effective from May 1, unless otherwise specified
10. 2026-02-16: Interim U.S.-India Trade Deal
    More details

    UPSC Angle: Interim US-India trade deal reduces tariffs.

    Key Facts:

    • U.S. reduced tariffs on Indian imports from 50% to 18%.
    • India will reduce tariffs on imports of industrial goods and agricultural products from the U.S.
    • India intends to purchase $500 billion worth of U.S. products over the next five years.
    • Bilateral trade already crossed ~$190–200 billion in FY24.
    • Interim trade agreement framework to be converted into operative legal text
    • US tariff reduction to 18% on Indian imports
    • India to purchase $500 billion in U.S. products over 5 years
    • India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products
    • Tariffs of 50% imposed since August 2025
    • The U.S. will reduce tariffs on Indian imports from 50% to 18%
    • India will lower tariffs on U.S. industrial and agricultural goods
    • India commits to purchase $500 billion in U.S. products over 5 years
    • India will reportedly stop Russian oil imports
    • U.S. cotton imports surged 95.5% in one year
    • Trump's Executive Order allows re-imposition of 25% tariffs if India resumes Russian oil imports
    • Bangladesh also secured a trade deal (Feb 9) with duty-free textile access to the U.S
    • Before the tariff dispute, average U.S. tariffs on Indian goods were around 2.5%
11. 2026-02-19: India-US Trade Deal
    More details

    UPSC Angle: India-US Trade Deal.

    Key Facts:

    • Trade deal agreed between US and India.
    • Tariff reduction on Made in India products from 50% to 18%.
12. 2026-02-20: India-U.S. Interim Trade Pact Expected to Be Operational in April
    More details

    UPSC Angle: India-U.S. interim trade pact expected to be operational in April.

    Key Facts:

    • India's FTAs with the U.K. and Oman are also expected to be implemented in April, and the pact with New Zealand in September.
    • U.S. Ambassador Sergio Gor said the India-U.S. trade deal is set to be inked soon.
    • The U.S. will reduce reciprocal tariffs on Indian products from a prior high of 25% (and previously up to 50%) to 18%, also eliminating the 25% punitive tariff previously imposed over India's purchases of Russian oil.
13. 2026-02-21: Trump Raises Global Tariffs to 15%
    More details

    UPSC Angle: Trump raises global tariffs to 15%.

    Key Facts:

    • Global tariffs raised from 10% to 15% by President Trump
    • Executive order signed enabling bypassing Congress to introduce tariffs
    • Tariffs limited to 150 days unless extended through legislation
    • Reduction in "reciprocal" tariffs on India to 18% after trade deal framework

Genesis

Trigger

On April 2, 2025, US President Donald Trump declared a national emergency due to the trade deficit and imposed a 26% additional import duty on Indian goods via Executive Order 14257.

Why Now

The US administration targeted India's trade surplus and its continued purchase of Russian oil, using 'reciprocal tariffs' as a tool to force market access for US industrial and agricultural goods.

Historical Context

This connects to the long-standing friction over India's 6% equalization levy (digital tax) and previous US withdrawals of GSP (Generalized System of Preferences) benefits, representing a more aggressive phase of bilateral 'transactionalism'.

Key Turning Points

1. [2025-04-02] US imposes 26% additional import duty on Indian goods via Executive Order 14257, escalating trade tensions.
2. [2026-02-16] India and the United States sign an interim trade agreement, reducing U.S. tariffs on Indian imports from 50% to 18%.

Key Actors and Institutions

What Happens Next

Current Status

As of February 16, 2026, an Interim Trade Agreement has been signed, lowering US reciprocal tariffs to 18% and removing the 25% Russian oil penalty. India is also set to receive similar benefits on textile exports as Bangladesh currently does. India has introduced 44 new tariff lines in the Union Budget for 2026-27 to track imports, including items for which it has granted market access to the US.

Likely Next

Negotiations for a full-scale Bilateral Trade Agreement (BTA) are expected to begin, moving beyond 'early harvest' items like nuts and spirits to more complex areas like services and IPR.

Wildcards

Fluctuations in global crude prices could test India's commitment to wind down Russian oil purchases in favor of US crude; additionally, WTO dispute rulings could still influence the final BTA terms.

All Events in This Story (13 items)

1. 2025-04-02 [International Relations] — India-US Trade Relations: Tariffs and Trade Deal
   On April 2, 2025, the US President Donald Trump declared a national emergency in response to the trade deficit and imposed an additional import duty of 26% on Indian goods. However, after negotiations, the US and India finalized a framework for an interim agreement, where the US would bring down the reciprocal tariff on Indian goods to 18%. India is expected to eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products.
   More details

   UPSC Angle: US imposed additional import duty of 26% on Indian goods.

   Key Facts:

   • US President Donald Trump announced an additional import duty of 26% on Indian goods on April 2, 2025.
   • US to bring down the reciprocal tariff on Indian goods to 18%.
   • India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products.
   • The United States will apply a reciprocal tariff rate of 18 percent under Executive Order 14257 of April 2, 2025.
   • India removed its 6% equalisation levy on digital advertising services effective April 1, 2025, through the Finance Bill 2025.
2. 2025-07-04 [International Relations] — India Proposes Retaliatory Tariffs on US Auto Imports at WTO
   India has notified the WTO of its intent to impose retaliatory tariffs on approximately $723.75 million worth of US automobile parts, responding to the 25% tariffs imposed by the US on Indian auto part exports, effective May 3, 2025. India argues that the US tariffs are inconsistent with WTO agreements, harming its trade interests, and has not formally notified these measures to the WTO. The proposed suspension, involving tariff increases on selected US products, is set to come into effect 30 days after the notification is issued.
   More details

   UPSC Angle: India proposes retaliatory tariffs on US auto imports at WTO.

   Key Facts:

   • India proposed retaliatory tariffs on US automobile parts imports at the WTO on July 4, 2025.
   • The US imposed a 25% tariff on imports of passenger vehicles, light trucks, and certain automobile parts originating in India on March 26, 2025.
   • US tariffs took effect on May 3, 2025.
   • India's retaliation targets US exports worth approximately $2.895 billion annually to India.
   • The suspension of concessions is expected to result in $723.75 million in additional duties on US products.
   • India invoked Article 8.2 of the Safeguards Agreement.
3. 2025-09-24 [International Relations] — India-US Trade Dynamics
   India filed a WTO challenge against the 50% tariffs imposed by the United States in August 2025, which included a 25% reciprocal tariff and a 25% penalty linked to India's purchases of Russian oil. The tariffs have heightened costs for Indian exporters. Commerce Minister Piyush Goyal is leading India's trade team in Washington to discuss the long-delayed India-US trade deal.
   More details

   UPSC Angle: India filed WTO challenge against US tariffs.

   Key Facts:

   • US imposed 50% tariffs on Indian exports in August 2025
   • Tariffs included 25% reciprocal tariff and 25% penalty on Russian oil purchases
   • Commerce Minister Piyush Goyal leading trade talks in Washington
4. 2025-12-13 [International Relations] — India Offers 'Final' Trade Deal to U.S., Focus on Tariff Removal
   India has offered the U.S. a revised “final” deal, prioritizing the removal of the additional 25% tariffs linked to Russian oil. India has offered to “immediately” remove tariffs on the import of items like walnuts, almonds, apples, and industrial goods as part of a larger Bilateral Trade Agreement.
   More details

   UPSC Angle: India offers 'final' trade deal to U.S., focusing on tariff removal.

   Key Facts:

   • India offered U.S. a revised “final” trade deal
   • Priority is the removal of 25% tariffs linked to Russian oil
   • India offered to “immediately” remove tariffs on walnuts, almonds, apples, and industrial goods
   • Sujit Ghosh, Joint Secretary of the East Asia Division of the Ministry of External Affairs (MEA)
   • Liu Jinsong, Director-General of the Department of Asian Affairs of the Chinese Foreign Ministry
5. 2026-01-06 [International Relations] — India-U.S. reach framework for trade agreement
   The United States and India have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. The key terms include India eliminating or reducing tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products.
   More details

   UPSC Angle: India-U.S. reach framework for trade agreement.

   Key Facts:

   • Parties: United States and India
   • Agreement: Interim Agreement regarding reciprocal and mutually beneficial trade
   • Key terms: India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products
6. 2026-02-04 [International Relations] — US-India Tariff Reset
   The United States announced it would lower the tariff applied to most Indian origin goods to 18 percent, down from 50 percent, and will remove a separate 25 percent punitive tariff that had been tied to India's purchases of Russian oil. In return, India has committed to end or rapidly wind down those purchases, pivoting toward alternative supply, including U.S. crude, and to reduce select tariff and non-tariff barriers, with additional commercial commitments under discussion.
   More details

   UPSC Angle: US lowers tariff on Indian goods to 18% from 50%.

   Key Facts:

   • US lowered tariff on most Indian goods to 18% from 50%
   • US removed 25% tariff on India's purchases of Russian oil
   • India committed to reduce Russian oil purchases
   • US reduced reciprocal tariff to 18%
   • Original tariff was nearly 50% (including punitive duties)
   • Additional 25% punitive duty removed
   • India may purchase up to USD 500 billion worth of US products
   • Bilateral trade (FY25): USD 132 billion
   • India's trade surplus: USD 40.82 billion
   • US is the 3rd largest investor in India with cumulative FDI of USD 70.65 billion (2000–2025)
   • India committed to $100 bn/year US imports for 5 years
   • The US lowered the reciprocal tariff from 25% to 18%
   • The additional 25% punitive duty imposed in August 2025 over India's Russian oil purchases has been removed
   • Effective tariff burden reduced from ~50% to 18%, restoring export competitiveness
7. 2026-02-09 [International Relations] — India-US Interim Trade Agreement Framework
   India and the United States have announced a framework for a United States–India Interim Trade Agreement, aiming for early harvest commitments on tariffs, market access, and non-tariff barriers, while continuing negotiations for a full Bilateral Trade Agreement (BTA). India will reduce or eliminate tariffs on U.S. industrial goods and agricultural products, including ethanol by-products, oilseeds, fruits, nuts, wine, and spirits.
   More details

   UPSC Angle: India and US announce framework for interim trade agreement.

   Key Facts:

   • The U.S.–India Interim Trade Agreement is designed to deliver early harvest commitments on tariffs, market access, and non-tariff barriers.
   • India will eliminate or reduce tariffs on U.S. industrial goods and a wide range of agricultural products, including ethanol by-products (DDGs), oilseeds, fruits, nuts, wine, and spirits.
   • The U.S. will apply a reciprocal tariff rate of 18% initially on select Indian exports.
   • United States–India Interim Trade Agreement announced
   • Aims to establish reciprocal and balanced trade based on mutual interests
   • India will eliminate or reduce tariffs on U.S. industrial goods and a wide range of agricultural products
   • U.S. will apply a reciprocal tariff rate of 18% initially on select Indian exports
   • US will remove tariffs on generic pharmaceuticals; gems and diamonds; selected aircraft and aircraft parts
   • India will receive ally-equivalent tariff treatment in certain aviation sectors, and get a preferential quota for auto parts at lower tariff rates
   • India agreed to tackle import licensing delays; standards-related restrictions; and barriers affecting medical devices, ICT goods, food and agricultural products
   • Talks to align with US or international standards to conclude within six months
   • Agreement allows India to import cutting-edge GPUs without such limits
   • India has offered a tax holiday until 2047 for foreign companies
   • Sector expected to reach $100 billion in bilateral trade
   • India will remove or reduce tariffs on all industrial goods from the U.S.
   • India will reduce tariffs on dried distillers' grains, red sorghum, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits imported from the U.S.
   • India and the United States will set clear rules of origin.
   • Commerce Minister Piyush Goyal stated India will fully protect sensitive farm and dairy products like maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, certain vegetables, and meat.
   • The United States will reduce tariffs to 18% on several types of goods imported from India.
   • Both countries will work towards completing a more detailed Bilateral Trade Agreement (BTA).
   • Both countries agreed to strengthen cooperation on economic security to improve supply chains and support innovation.
   • United States–India Interim Trade Agreement
   • Temporary, outcome-oriented trade framework
   • Aims for early harvest commitments on tariffs, market access, and non-tariff barriers
   • India will eliminate/reduce tariffs on U.S. industrial goods and agricultural products
   • Pathway to tariff removal on priority sectors (e.g., generic pharmaceuticals, gems & jewellery, aircraft parts)
   • India has offered a tax holiday until 2047 for foreign companies in data centers
   • Expected $200 billion investment in data center sector
   • Bilateral trade in electronics sector expected to reach $100 billion
8. 2026-02-14 [International Relations] — India-U.S. Trade Agreement Discussions and Implications
   Piyush Goyal stated that India will receive similar benefits on textile exports under its interim trade agreement with the U.S. as Bangladesh currently does. Recent changes in the India–U.S. deal include the removal of specific references to “pulses,” “agricultural products,” and “digital service tax” from a fact sheet, with India now indicating it “intends” to buy $500 billion worth of American goods.
   More details

   UPSC Angle: India will receive similar benefits on textile exports under U.S. trade agreement.

   Key Facts:

   • Piyush Goyal
   • textile exports
   • interim trade agreement
   • United States
   • Bangladesh
   • Bangladesh–U.S. trade deal
   • tariffs on Bangladesh's exports to the U.S. will be reduced to 19% overall
   • $500 billion worth of American goods
9. 2026-02-14 [Economy] — India Creates 44 Tariff Lines to Map US Market Access
   India has introduced 44 new tariff lines in the Union Budget for 2026-27 to track imports, including items for which it has granted market access to the United States under the trade agreement. These include pecan nuts, fresh and dried cranberries, and blueberries.
   More details

   UPSC Angle: New tariff lines to track US market access under trade agreement.

   Key Facts:

   • 44 new tariff lines
   • Union Budget 2026-27
   • Track imports from US
   • Pecan nuts
   • Fresh and dried cranberries
   • Blueberries
   • Effective from May 1, unless otherwise specified
10. 2026-02-16 [International Relations] — Interim U.S.-India Trade Deal
    India and the United States have signed an interim trade agreement, reducing U.S. tariffs on Indian imports from 50% to 18%. In return, India will eliminate or significantly reduce tariffs and non-tariff barriers on imports of industrial goods and a wide range of food and agricultural products from the U.S.. India has also expressed its intent to purchase $500 billion worth of U.S. energy products, aircraft, aircraft parts, precious metals, technology products, and coking coal over the next five years.
    More details

    UPSC Angle: Interim US-India trade deal reduces tariffs.

    Key Facts:

    • U.S. reduced tariffs on Indian imports from 50% to 18%.
    • India will reduce tariffs on imports of industrial goods and agricultural products from the U.S.
    • India intends to purchase $500 billion worth of U.S. products over the next five years.
    • Bilateral trade already crossed ~$190–200 billion in FY24.
    • Interim trade agreement framework to be converted into operative legal text
    • US tariff reduction to 18% on Indian imports
    • India to purchase $500 billion in U.S. products over 5 years
    • India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products
    • Tariffs of 50% imposed since August 2025
    • The U.S. will reduce tariffs on Indian imports from 50% to 18%
    • India will lower tariffs on U.S. industrial and agricultural goods
    • India commits to purchase $500 billion in U.S. products over 5 years
    • India will reportedly stop Russian oil imports
    • U.S. cotton imports surged 95.5% in one year
    • Trump's Executive Order allows re-imposition of 25% tariffs if India resumes Russian oil imports
    • Bangladesh also secured a trade deal (Feb 9) with duty-free textile access to the U.S
    • Before the tariff dispute, average U.S. tariffs on Indian goods were around 2.5%
11. 2026-02-19 [Economy] — India-US Trade Deal
    The US and India have agreed to a trade deal, with reduced tariffs on Made in India products. The tariff reduction from 50% to 18% is expected to provide a breather for sectors focused on exports to the US.
    More details

    UPSC Angle: India-US Trade Deal.

    Key Facts:

    • Trade deal agreed between US and India.
    • Tariff reduction on Made in India products from 50% to 18%.
12. 2026-02-20 [International Relations] — India-U.S. Interim Trade Pact Expected to Be Operational in April
    An interim trade agreement between India and the U.S. is likely to be signed in March and operationalised in April, according to Commerce and Industry Minister Piyush Goyal. India will send a delegation, headed by chief negotiator Darpan Jain, to the U.S. next week to finalize the legal text of the agreement.
    More details

    UPSC Angle: India-U.S. interim trade pact expected to be operational in April.

    Key Facts:

    • India's FTAs with the U.K. and Oman are also expected to be implemented in April, and the pact with New Zealand in September.
    • U.S. Ambassador Sergio Gor said the India-U.S. trade deal is set to be inked soon.
    • The U.S. will reduce reciprocal tariffs on Indian products from a prior high of 25% (and previously up to 50%) to 18%, also eliminating the 25% punitive tariff previously imposed over India's purchases of Russian oil.
13. 2026-02-21 [Economy] — Trump Raises Global Tariffs to 15%
    President Trump announced an increase in global tariffs from 10% to 15% following a US Supreme Court ruling that limited his power to impose sweeping tariffs. This decision follows a previous reduction in tariffs on India to 18% after an interim trade deal framework was agreed upon. White House officials clarified that countries with trade agreements with the US, including India, would temporarily see tariffs reduced to 10% before the new duties are applied.
    More details

    UPSC Angle: Trump raises global tariffs to 15%.

    Key Facts:

    • Global tariffs raised from 10% to 15% by President Trump
    • Executive order signed enabling bypassing Congress to introduce tariffs
    • Tariffs limited to 150 days unless extended through legislation
    • Reduction in "reciprocal" tariffs on India to 18% after trade deal framework