New Delhi avoided a higher tariff rate via a timely policy change, but US demands and Russian oil friction leave a trade deal in limbo
3-MIN READ3-MIN ListenBiman MukherjiPublished: 2:25pm, 28 Jul 2026India has been spared the worst of Washington’s latest tariff action, but analysts say much work still needs to be done to secure a long-awaited US trade deal despite the lower-than-expected levy.The Trump administration’s fresh round of tariffs, unveiled last week, targeted 60 economies it accuses of failing to curb imports made with forced labour.As late as last month, India was being threatened with a 12.5 per cent rate, but ultimately earned a place among the 17 economies – including Canada, Britain, Bangladesh and Pakistan – hit with the lower 10 per cent tariff.
The reprieve followed India amending its foreign trade policy on June 14 to ban imports of goods made with forced labour, which US Trade Representative Jameson Greer cited when placing India in the lower tariff band.
