India and US Stride Towards Progressive Trade Accord Amid New Tariff Investigations
India maintains its engagement with the US to secure a mutually beneficial trade agreement despite ongoing tariff consultations and investigations. The recent removal of US tariffs on Indian exports and an interim trade agreement framework are notable developments in the evolving trade relations between the two nations.
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India continues to engage with the United States to secure a trade agreement designed to be mutually beneficial, Commerce Secretary Rajesh Agrawal confirmed this week. At a recent media briefing, Agrawal announced that a joint statement regarding a new trade deal with the US was made public on February 7.
The joint statement follows the US decision to remove the additional 25% ad-valorem tariffs on certain Indian exports on February 7, 2026, which were previously justified by India’s imports of Russian oil, said Agrawal. This move aligns with a US Supreme Court decision on February 20, 2026, which rendered previous reciprocal tariffs invalid.
Meanwhile, the US has opted to impose fresh 10% tariffs on certain global products under Section 122 of the Trade Act, 1974. Reports suggest that both nations are proactively working towards a comprehensive trade agreement once a new global tariff architecture is in place. Earlier speculations suggested that an interim agreement might be signed as soon as March.
The Commerce Ministry, amid speculations of stalled talks, reaffirmed that both India and the United States remain committed to finalizing a trade agreement. Last month, both countries outlined a framework for an Interim Agreement, underscoring their commitment to expanded trade discussions initiated in February 2025 by Donald Trump and Narendra Modi.
A new development sees the Trump administration launching investigations into alleged "unfair trade practices" by 16 major trading allies, including India. The move comes after a recent US Supreme Court decision deemed previous tariffs illegal, and fresh tariffs could impact several nations including China, India, and the European Union by summer.
The ongoing investigations under Section 301 of the Trade Act of 1974 could lead to further punitive actions. Officials aim to increase bilateral trade value to USD 500 billion by 2030, significantly elevating the current trade figure of USD 191 billion.
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