From Traffic Tussle to Trade Deal: The US-India Journey

President Donald Trump announced a trade deal with India on Monday, months after Washington imposed steep tariffs of up to 50 percent on Indian goods, including penalties related to the central government’s purchase of Russian crude oil.
Announcing the agreement on his social media platform Truth Social, Trump said the US would reduce reciprocal tariffs on Indian exports from 25 percent to 18 percent and claimed that India had agreed to lower tariffs on American goods and stop importing Russian oil. Prime Minister Narendra Modi acknowledged the tariff reduction, calling it a boost for “Made in India” products, but New Delhi has not commented on the US president’s claims regarding oil.

The deal was announced after months of negotiations. Here’s a look at the key moments that led to the announcement of the deal on February 2:
Target Set (February 13, 2025)
Prime Minister Narendra Modi and US President Donald Trump agreed to deepen bilateral trade relations, setting a target of more than doubling trade to $500 billion by 2030. Both sides announced plans to negotiate the first phase of a multi-sectoral bilateral trade agreement by the fall of 2025.
Negotiations Begin — Then Stall (March-April 2025)
Commerce Minister Piyush Goyal made several trips to Washington, holding talks with US Trade Representative Jamison Greer and Commerce Secretary Howard Lutnick. But on April 2, Trump imposed a 26 percent import duty on Indian goods, derailing the talks. Although the tariffs were suspended for 90 days on April 9, uncertainty remained.
Formal Negotiations Resume (April-June 2025)
India’s chief negotiator Rajesh Agarwal led delegations to Washington, while a US team led by Additional USTR Brendan Lynch visited India. The negotiators agreed on a framework for the talks, which spanned 19 chapters and included tariffs, market access, digital trade, and regulatory barriers.

Time pressure (June 2025)
With the July 9 tariff deadline approaching, India sent another delegation to Washington to resolve the differences. A few days later, Trump publicly stated that the US was moving toward a “very big” trade deal with India, a sign of political intent despite the remaining disagreements.