2 months ago
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India remains engaged with the U.S. connected a commercialized deal, Commerce Secretary Rajesh Agrawal said connected Monday (March 16, 2026). Sources successful the government, however, said that India volition present motion a commercialized woody with the U.S. lone erstwhile that state has settled its “tariff architecture” and has clarified the country-wise tariff rates.
This comes against the backdrop of 2 trade-related investigations the U.S. is carrying out that could perchance spot further tariffs being levied connected a fig of countries, including India.
“Pursuant to the U.S. Supreme Court judgement dated 20th February 2026 invalidating reciprocal tariffs, the reciprocal tariffs are nary longer successful force,” Mr. Agrawal said astatine a property briefing.
“The U.S. Government has issued Executive Orders imposing 10% tariffs pursuant to conception 122 of the Trade Act 1974 connected definite products from each countries,” helium added. “India remains engaged with the U.S. broadside for a mutually beneficial commercialized agreement.”
Uncertainty implicit deal
India and the U.S. announced a commercialized woody connected February 2, 2026 and a associated connection connected the finalisation of a model for the woody was released connected February 7. At the time, Commerce Minister Piyush Goyal had said that the woody would beryllium signed successful March.
The U.S. Supreme Court connected February 20 ruled against the validity of U.S. President Donald Trump’s usage of the International Emergency Economic Powers Act (IEEPA) to levy reciprocal tariffs connected America’s commercialized partners. It is aft this that the U.S. imposed the 10% tariffs connected each its commercialized partners nether Section 122 of the Trade Act, 1974. These tariffs are successful unit for a play of 150 days from February 24.
“The U.S. woody was to beryllium signed successful March. When we said this, astatine that clip the Supreme Court judgement connected IEEPA tariffs had not come,” a elder authoritative successful the Ministry of Commerce explained. “Now with the Supreme Court judgement connected IEEPA tariffs, the tariffs per se don’t exist.”
Final complaint yet to beryllium decided
Additionally, implicit the people of March 11-12, the U.S. Trade Representative initiated 2 abstracted investigations into the U.S.’ commercialized partners nether Section 301 of the Trade Act, 1974. If the findings of these investigations warrant it, the U.S. tin enforce further tariffs connected peculiar countries.
“Any woody that we finalise and motion has to beryllium seen against the tariff operation oregon comparative vantage that India gets successful the U.S. market,” the authoritative added. “The U.S. is moving connected trying to recreate a tariff architecture globally. If they are capable to finalise that, astatine that juncture it would beryllium close to motion the deal.”
Under the model announced by the 2 countries, the U.S. was to enforce an 18% tariff connected astir goods imported from India. Now, the caller complaint volition beryllium connected the rates the U.S. imposes connected India’s competitors.
“Depending connected however their tariff architecture settles, that volition find wherever India volition land,” the authoritative said. “In lawsuit each others are astatine 19%, 20%, 21%, 22%, past India volition stay astatine 18%. But if others travel down, past India volition besides travel down. That is thing for the U.S. besides to instrumentality a telephone on.”
India importing much Russian oil
Mr. Agrawal besides highlighted the U.S.’ removal of tariffs connected India linked to its import of Russian oil.
“On February 7, 2026, the 25% further ad-valorem tariffs imposed by the U.S. connected definite Indian exports citing India’s imports of Russian lipid were removed,” Mr. Agrawal noted.
Following the commencement of the ongoing struggle successful West Asia, the U.S. Treasury Department issued an bid to “allow” India to import lipid from Russia, a concession it aboriginal expanded to each countries.
“On petroleum, whether we are buying it astatine a premium [from Russia], the Petroleum Ministry would beryllium the close forum to reply it successful detail,” Mr. Agrawal said. “But we bash show the import information and we tin accidental that we are buying Russian lipid and determination has been an accrued buying of Russian lipid successful the existent period due to the fact that of the challenges we are facing.”
