India-US trade deal update: Amidst ongoing uncertainty related to tariffs under the Donald Trump administration, Commerce Secretary Rajesh Agrawal has shared an update on the India-US trade deal. The official has said that the India-US trade agreement will be signed once Washington restores its global tariff rates.The comments assume significance at a time when the US Supreme Court has struck down the tariffs that were imposed by the Trump administration, calling them illegal. This puts focus on the various trade deals that the Trump administration has finalised. Soon after the court verdict, a flat 10% tariff was imposed by the US government on its trading partners, which may be raised to 15% in the coming days.
India-US trade deal: What’s the latest update?
According to a Reuters report, trade secretary Rajesh Agrawal has noted that the US is currently working on rebuilding the global tariff framework. He made it clear that the India-US trade deal will be signed when the US re-establishes global tariff rates.“Actual signing of India-US trade deal will be done when the new architecture of tariffs is in place. We are talking right now on details with the US,” Rajesh Agrawal said according to PTI.In early February, India and the US announced a trade deal framework under which the US cut tariffs on Indian exports to 18%. The Trump administration also removed the 25% levy with regards to Russian oil purchases contingent on India stopping procurement from Russia. However, India has not stopped buying Russian crude yet, and has in fact stepped up purchases after the Middle East conflict choked supplies from the Strait of Hormuz. The US has claimed granting a 30-day waiver to India for buying Russian crude, while India has said that it does not need permission to decide its energy security strategy.Meanwhile, the government on Friday dismissed reports suggesting that it was pausing bilateral engagement or delaying a trade agreement with the United States, stating that discussions between the two countries are continuing toward a mutually beneficial pact.“We have noted a media report regarding ongoing trade talks with the US. It is denied that there is any hold off in bilateral engagement. It is reiterated that the two sides remain engaged for a mutually beneficial trade agreement,” the commerce ministry said in a statement.
