Tariffs, Pulses and Power Plays: Inside the Latest India-US Trade Battle

India and the United States are now close to finalising the first phase of a long-discussed Bilateral Trade Agreement (BTA). Commerce Secretary Rajesh Agrawal has indicated that negotiations are at an advanced stage, even as both sides navigate fresh trade frictions triggered by tariff decisions and political pressure.

Rising Tariffs that Strained Ties

After US President Donald Trump imposed steep tariffs, up to 50 per cent on several Indian exports (the highest levied on any trading partner), the relationship took a sharp turn. In response to this, India quietly moved to protect its domestic agricultural market by imposing a 30 per cent duty on yellow peas, effective November 1, 2025. This move has had ripple effects across the U.S. farm states that are heavily dependent on pulse exports.

Calls for action are growing louder

Behind the scenes, pressure continues to build in Washington. Republican Senators Steve Daines of Montana and Kevin Cramer of North Dakota, states that lead US pulse production, have urged President Trump to push for tariff relief for American farmers in upcoming talks with India. In a letter dated January 16, the lawmakers argued that India’s duties on lentils, chickpeas, peas and dried beans have put US producers at a serious disadvantage, despite India being the world’s largest consumer of pulses.

The Road Ahead

Despite recent tensions, both countries have signalled a desire to reset their ties. Trump’s new ambassador to India has called New Delhi indispensable to US interests, while Indian officials maintain that a trade breakthrough is close. It remains uncertain whether pulses will serve as the lever for deeper cooperation, but for now, tariffs continue to dominate the India-US trade story.

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