Regarding the proposed trade deal with America, the Central Government said on Monday (16 March 2026) that the formal signing with Russia will be done only when the new tariff is finalized between the two countries. Commerce Secretary Rajesh Aggarwal said that we are currently discussing its details with America. He said, ‘The India-US trade deal will be signed only after the new tariff structure is decided. There is no deadlock in this nor is it that there is no compromise.
Decline in India’s goods exports
This statement from the Center has come at a time when the government informed that India’s goods exports fell marginally by 0.81 percent to US $ 36.61 billion in February. However, this month (March) a sharp increase of 24.11 percent has been recorded in imports, which has now reached US $ 63.71 billion. This is more than US$51.33 billion a year ago. Rajesh Aggarwal said that despite global uncertainties, India’s exports remain strong.
Challenges increased due to Middle East war
He said that in the first 11 months (April-February) of the financial year 2025-26, the country’s exports have increased by 1.84 percent to US $ 402.93 billion. During the same period, imports also increased by 8.53 percent to US $ 713.53 billion. The Commerce Secretary also hinted at possible challenges for exports in the coming weeks. He said that due to the logistics challenges arising due to the ongoing crisis in the Middle East, a decline in shipments may be seen in March.
Trump’s new bet regarding tariffs
After receiving a setback from the US Supreme Court regarding its tariff policy, the Trump administration has played a new bet. America has started a major trade investigation against 16 countries. India’s name is also included in these countries. America has targeted India and 15 other countries for excess industrial capacity in the manufacturing sector. After the investigation is completed, tariffs or other trade measures can be taken against these countries.
US court gives blow to Trump regarding tariffs
India and the US had announced last month the finalization of a framework for the first phase of a bilateral trade agreement. Under this framework, America had agreed to reduce the tariff on India by 18 percent. However, after the US Supreme Court repealed the comprehensive duty imposed by President Trump, the duty structure in America has been changed. After the decision, Trump has imposed 10 percent tariff on all countries for 150 days from February 24. In view of these changes, the meeting of the chief negotiators of India and America has been postponed.
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