India-US Relations - Tariffs & Ties

In 2026 the India-US economic relationship swung from confrontation to deal-making inside a single year. After Indian goods faced U.S. reciprocal duties that had climbed as high as 50 percent, New Delhi and Washington unveiled a framework interim trade pact on 7 February 2026 that pared the headline rate to 18 percent and zeroed it out on a swathe of exports. Yet the thaw arrived alongside a bruising $100,000 charge on new H-1B work petitions, leaving the partnership defined as much by friction as by cooperation.