Tariffs Cut to 18% as Rubio Travels to India for Trade Talks Amid Strained Relations

Trade deal remains unfinished

Rubio met with Indian Foreign Minister Subrahmanyam Jaishankar in Mumbai as both governments seek to conclude a trade agreement. Rubio told reporters they were close to signing, with only a few issues remaining.

The United States imposed tariffs of up to 50% on most Indian goods in August 2025 after negotiations broke down. A framework reached in February brought the rate down to 18%, but talks have since stalled.

Tariffs and competing exporters

India has said it wants its final tariff rate to be comparable to rates for manufacturing competitors such as Vietnam. The negotiations have not yet produced a final agreement.

The countries continue to build defense and technology ties despite tensions. Washington regards India as an important counterweight to China in the Indo-Pacific.

Energy and regional discussions

Before leaving the United States on Saturday, Rubio said India had diversified its energy sources but still bought substantial amounts of Russian oil. He said shifting quickly to other suppliers would be difficult.

Rubio’s schedule in India

Rubio’s India visit followed a trip to Uzbekistan this week, where he promoted trade and ties with Central Asia. On Wednesday, he was scheduled to visit a refinery in Jamnagar, Gujarat state.

The U.S. State Department said Rubio would also meet with business leaders. The visit comes as the two countries pursue closer energy cooperation alongside trade discussions.