Archive · 15 Jan 2026
US-India Trade Talks Continue Amid Tariff Concerns
The US and India are talking about making a trade deal.
Even though there are high taxes (tariffs) on some Indian goods, India's exports are still growing.
In December 2025, India sold $38.5 billion worth of goods to other countries, which is a bit more than last year.
The country is also trying to sell more to places like China, Russia, and the Middle East.
The US might put even higher taxes on countries that do business with Iran, which could affect India.
Both countries are working on a trade deal, but they haven't set a deadline yet.
India's merchandise exports rose 1.87% to $38.5 billion in December 2025, while imports increased to $63.55 billion, resulting in a trade deficit of $25 billion.
Despite global uncertainties, India's exports are expected to exceed $850 billion in FY26, with April-December 2025 exports at $330.29 billion.
India faces a 50% tariff from the US and potential additional tariffs on countries doing business with Iran.
India is diversifying its export markets beyond the US and EU, with potential trade deals with China, Russia, the Middle East, and the EU.
US and Indian trade negotiators are engaged in discussions for a trade deal, with a virtual meeting held in December 2025, but no deadline has been set.
- Who
- US and Indian trade negotiators
- What
- Resumption of trade agreement negotiations and export growth
- When
- After the Christmas holidays and ongoing
- Where
- Virtual talks from Washington
- Why
- To discuss the timeline for the next steps in the trade agreement and to address tariff concerns
- December 2025 Exports
- $38.5 billion
- December 2025 Imports
- $63.55 billion
- December 2025 Trade Deficit
- $25 billion
- April-December 2025 Exports
- $330.29 billion
- Projected FY26 Exports
- More than $850 billion
- US Tariff on India
- 50%
- Potential US Tariff on Iran Business
- 25%
- December Services Exports
- $35.50 billion
- December Services Imports
- $17.38 billion
- December Services Trade Surplus
- $18.12 billion
Sources
New auto component orders from US in limbo after Trump tariffs: ACMA
Indian luxury car market to remain flat in 2026: Mercedes-Benz India CEO
India-US trade negotiators return to table after Christmas break: Official
India’s shrimp exports must seek to diversify
Auto parts industry to see stability from 2027 despite US tariff pressure: ACMA
India's trade deficit widens in December on sharp rise in imports
India and US engaged in trade deal talks, commerce secretary Rajesh Agrawal confirms - Telegraph India
