India and the United States remain engaged in ongoing negotiations over their bilateral trade agreement amid mounting tariffs and geopolitical strains, signalling a persistent focus on deepening economic ties despite recent challenges.
India and the United States remain in close contact over their proposed bilateral trade agreement even as fresh tariff pressures complicate the talks, according to Commerce Secretary Rajesh Agarwal. He said both governments are still committed to the framework reached in February and that discussions are continuing regularly, suggesting that neither side has walked away from the broader agenda.
The negotiations build on a longer effort to deepen commercial ties. In 2023, the US Commerce Department said bilateral trade in goods and services had nearly doubled since 2014 and topped $191 billion in 2022, underlining the scale of the economic relationship. In April 2025, Washington and New Delhi set terms of reference for a trade pact, laying out a roadmap centred on market access, tariff cuts and non-tariff barriers.
But the latest round of talks has been shadowed by US tariff action and wider geopolitical strains. India’s exports are already facing an additional 10% duty under a Section 301 investigation linked to forced labour concerns, while a sanctions bill approved by the US Senate could allow tariffs of up to 100% on goods from major buyers of Russian oil, including India. Agarwal described that measure as part of an ongoing legislative process in the US and declined to comment further.
The stakes are particularly high because India depends on imports for more than 85% of its crude oil needs. Its purchases from Russia have risen sharply, accounting for more than half of total oil imports in July, even as New Delhi has broadened its supply base to 41 countries from 27 and expanded liquefied natural gas sourcing to 15 countries from six. That diversification has become a central part of India’s energy security strategy as it seeks to keep trade negotiations with Washington on track.
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