India–US Trade
Section 232, Reciprocal Tariffs, and the BTA
The India–US Bilateral Trade Agreement (BTA) negotiations were formally launched in February 2025, building on the Trade Policy Forum (TPF). The US subsequently imposed broad "reciprocal tariffs" citing trade deficit concerns; the rate on Indian goods initially set at 25% was reduced to 18% under a February 2026 Interim Agreement. Section 232 of the US Trade Expansion Act 1962 allows the President to impose tariffs on national security grounds — applied to steel (25%) and aluminium (10%) globally in 2018. India received a preferential tariff rate quota for automotive parts under the 2026 Interim Agreement, while Section 232 tariffs on steel and aluminium remain in place for Indian exports.
- Section 232 (Trade Expansion Act 1962): national-security-based tariff authority
- Steel tariff under Section 232: 25%; aluminium: 10%
- US reciprocal tariff on India (initial): 25%; reduced to 18% under February 2026 Interim Agreement
- India–US BTA: launched February 2025; full agreement under negotiation
- Trade Policy Forum (TPF): ministerial mechanism for India-US trade dialogue
- India's export sectors most affected by Section 232: steel, aluminium, copper
- India's export sectors most affected by CBAM: steel, aluminium, fertilisers, cement
● Tracked since February 05, 2026 · last seen May 27, 2026 · updates as the daily brief publishes