The US cuts tariffs on India's rubber goods from 50% to 18%, reshaping bilateral trade dynamics. In early 2026, the United States and India announced a landmark interim trade framework that dramatically reconfigures their economic relationship. At its heart, the U.S. has agreed to slash reciprocal tariffs it imposed on Indian goods, including rubber products, from punitive levels of roughly 50% to 18%. This change comes after prolonged trade tensions triggered by U.S. tariff hikes in 2025 and prolonged negotiations to reset access conditions for both countries. According to the latest US export data, the total value of the US-India rubber trade reached $1.30 billion in 2024-25. India is the 11th largest rubber exporter to the USA, according to the US rubber import data.

For India, one of the world's largest producers and exporters of rubber-based goods, this represents not just tariff relief but a strategic gateway back into competitiveness in the U.S. market. For the U.S., it signals a partial recalibration of "America First" trade policies in favour of more balanced economic engagement.

Rubber was one among several industrial and manufactured goods that saw tariffs jump to these punitive levels. While base rates for rubber products were traditionally modest under standard MFN (Most Favoured Nation) schedules, the reciprocal tariff escalation meant Indian rubber exporters suddenly faced effective duties in excess of 50%, a level that effectively priced many products out of the U.S. market. The tariff shock triggered urgent policy engagement, export slowdowns, and industry pushback, especially from the Automotive Tyre Manufacturers' Association (ATMA) and rubber processors who stated that such duties severely constrained their market momentum in the U.S. and handed an edge to competitors like Turkey and Vietnam.