President Donald Trump imposed a 25% tariff on Indian imports, effective 7 August, after month-long negotiations for a limited trade pact collapsed. Indian officials had publicly floated a tariff cap of 15% and expected an announcement before the U.S. 1 August deadline, but the White House instead moved to penalise New Delhi and threatened further duties over its purchases of Russian oil. Talks had progressed through five formal rounds. According to officials on both sides cited by Reuters, India offered zero duties on industrial goods that account for roughly 40% of U.S. exports to the country, a phased reduction of levies on American cars and alcohol, and up to $25 billion in additional U.S. energy imports. Washington pressed for deeper concessions, particularly on duty-free access for farm and dairy products, and broader market-access commitments. Negotiators blame a combination of over-confidence in New Delhi, shifting U.S. demands, and a communication breakdown at the leader level. A tense, 35-minute phone call on 17 June—in which Trump raised Pakistan and Russian oil—soured relations, and no direct contact between the two leaders followed. Officials say Trump wanted a ‘headline-grabbing’ accord, while Modi hesitated to be drawn into a one-sided conversation. Bilateral goods-and-services trade tops $190 billion, and businesses on both sides face higher costs as the new tariff takes effect. Trump has warned he could raise the levy “very substantially” within 24 hours unless India offers additional concessions. A U.S. delegation is expected in Delhi later this month, and officials in both capitals maintain that a deal is still salvageable if Modi and Trump reopen direct talks.