Will US roll back 25% tariffs on India?
Times of India | Jan 24, 2026, 10:15 IST
Will US roll back 25% tariffs on India?
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Published on: Jan 1, 2026
Author: Times of India
Category: General
Reading time: 5 min
The United States’ trade relationship with India has once again come under the spotlight, with fresh indications that Washington may revisit the 25% tariffs imposed on a range of Indian exports.
The development follows a reported decline in India’s purchase of Russian crude oil, an issue that had previously strained bilateral ties.
Sources familiar with the discussions said that officials from both countries are engaged in quiet negotiations aimed at reducing friction.
The tariffs, introduced during the earlier phase of trade disputes, had a direct impact on sectors such as metals, engineering goods, and certain consumer products.
Indian exporters have consistently argued that the additional duties affected competitiveness in the US market.
On the American side, the measures were justified as a way to protect domestic industries and address trade imbalances.
Changing geopolitical dynamics, however, appear to have prompted a reassessment of earlier positions.
Analysts note that easing trade restrictions could help stabilise global supply chains that remain under stress.
Bilateral trade between India and the US currently exceeds $190 billion annually, highlighting the stakes involved.
Any policy shift on tariffs is expected to take into account both economic and strategic considerations.
Explained: Why US tariffs on India matter
Trade experts believe that a rollback of tariffs would signal a renewed commitment by the US to strengthening economic ties with India.
Such a move could also align with broader efforts to diversify supply chains amid ongoing geopolitical uncertainties.
Indian officials have maintained that energy procurement decisions are guided by national interest and prevailing market conditions.
They point out that reduced oil purchases from Russia demonstrate India’s responsiveness to global concerns.
Business groups in both countries have welcomed the renewed engagement, calling it a positive step toward predictability.
Export-oriented sectors are particularly hopeful that easing tariffs will revive demand and improve margins.
From Washington’s perspective, closer trade ties with India are viewed as strategically important in the Indo-Pacific region.
Any formal announcement is likely to follow detailed policy reviews and negotiations.
Analysts caution that trade outcomes often involve compromise and should be assessed in a broader context.
As discussions continue, industry stakeholders and markets will be closely watching for concrete signals.
Comments (40)
›✨ What Readers Are Saying
Comments indicate concerns about India potentially succumbing to US pressure and compromising its sovereignty over Russian oil. Many believe trade disputes and political maneuvering, not just oil imports, drive tariff adjustments. Some argue sanctions have impacted India more than tariffs.
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22 minutes ago
Remember what Canadian Prime Minister Mark Carney warned about the danger of middle powers “acquiescing” or “accommodating” USA’s pressure results in a loss of their actual independence. So, it’s not ... Read More
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