India has avoided the most severe tier of US tariffs linked to forced-labour allegations, following a timely policy adjustment by New Delhi.
While the immediate threat of the highest levies has receded, analysts warn that significant work remains to secure a long-awaited bilateral trade deal.
The lower-than-expected tariff rate provides temporary relief for Indian exporters, but the underlying trade relationship remains fragile.
The development comes after India publicly criticized Washington’s approach to the proposed tariffs, arguing that the policy was inconsistent and selectively exempted thousands of items essential to the US economy.
Despite this diplomatic pushback, the Trump administration’s demands continue to create friction.
A key sticking point remains India’s continued import of Russian oil, which complicates efforts to align trade interests with US geopolitical objectives.