US had imposed penalty tariff on India at the end of August 2025, citing purchase of Russian oil. Trump, Modi announced reduction of reciprocal tariffs earlier Monday.
India’s merchandise exports to US remain positive, despite 50% tariffs, while imports from US grew by 12.85% in the first three quarters of the financial year.
UK, EFTA already in the bag and EU on the way, many members of RCEP except China signed up, and even restrictions on China being lifted, India has changed its mind on trade.
Two sides have held multiple rounds of negotiation to arrive at a balanced & mutually beneficial trade agreement & a deal was close on several occasions, asserts MEA.
India, Howard Lutnick says, was uncomfortable with a Modi-Trump call & that let a negotiated deal fall through & when Delhi was ready for a deal, Washington wanted different terms.
The year began with two major trade announcements—opening of negotiations for “first tranche” of a bilateral trade agreement with the US following PM Modi’s visit to Washington.
The country’s largest Islamist party, the Bangladesh Jamaat-e-Islami, has emerged as a strong opposition, winning as many as 68 seats. This is a threat to BNP.
On bilateral ties, Admiral Paparo said India-US ties have an exponential effect on deterrence, because it demonstrates a unity of purpose among us to maintain the peace.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
COMMENTS