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India Slaps 30% Tariff on U.S. Pulses Amid Trade Tensions

1/18/2026

36 6 Full Breakdown

Summary

India's Tariff Retaliation

India imposes a 30% import duty on pulses from the United States, effective November 1, 2025.
The tariff is a retaliation against the United States' earlier 50% tariffs on Indian goods.
U.S. Senators Kevin Cramer (R-ND) and Steve Daines (R-MT) urge U.S. President Donald Trump to remove the tariffs.
India says the tariff protects domestic agriculture and stabilizes prices, complicating ongoing trade talks.

Summary

India-U.S. Trade Talks

India and the United States resumed trade talks on January 13, 2026, ending a tariff impasse tied to Russian oil.
Discussions aim to rebuild trust amid tariff and IP concerns.
India will join the U.S.-led Silicon Peace Initiative in February 2026 to secure rare earth supply chains.
Regulatory and environmental hurdles hinder monazite-based production.
The U.S.-India partnership seeks to counter China's dominance in rare earths.

History

Historical Context

The U.S.-India trade relationship has faced significant strain since 2018, when the U.S. imposed tariffs on steel and aluminum, affecting $34 billion in imports. This prompted India to retaliate with tariffs on U.S. goods, including a recent 30% duty on U.S. pulses. These developments underscore the complexities of international trade negotiations and the ongoing cycle of economic retaliation between the two nations.

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India's Tariff Retaliation

India imposes a 30% import duty on pulses from the United States, effective November 1, 2025.
The tariff is a retaliation against the United States' earlier 50% tariffs on Indian goods.
U.S. Senators Kevin Cramer (R-ND) and Steve Daines (R-MT) urge U.S. President Donald Trump to remove the tariffs.
India says the tariff protects domestic agriculture and stabilizes prices, complicating ongoing trade talks.

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