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India and US Keep Trade Deal Talks Alive as US Tariffs Cloud Timeline

Washington’s Section 301 duties and a Senate bill that could allow 100% tariffs are creating fresh hurdles for finalising the February framework.

Overview

  • Commerce Secretary Rajesh Agarwal said Thursday that New Delhi and Washington remain in regular contact and are committed to the trade framework agreed in February.
  • The US has applied an additional 10% duty under a Section 301 probe that currently covers roughly 55% of Indian exports while about 45% are exempt.
  • India has formally submitted representations in the Section 301 process and is now waiting for the US to issue draft recommendations so it can respond again.
  • A US Senate bill that would let the president impose up to 100% tariffs on the top importers of Russian oil has added acute legislative risk that could affect India’s access to the US market.
  • The dispute matters for real commerce because India sent about $87 billion of goods to the US in 2025–26 and New Delhi says any first tranche of the deal will take effect only after it secures a comparative tariff edge for its exporters.