Stories
India-US Trade Talks Stall Again Amid Tariffs and Oil Disputes
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CNBC TV18•06-10-2026, 21:40
India-US Trade Talks Stall Again Amid Tariffs and Oil Disputes
- •Efforts to finalise a bilateral trade agreement between India and the US have stalled again following complications over new US laws and ongoing trade investigations.
- •A new US law paving the way for up to 100% tariffs on Indian goods due to New Delhi's continued purchases of Russian oil has further complicated negotiations.
- •Washington has yet to complete a Section 301 trade investigation on excess industrial capacity, leaving the final tariff rates for Indian goods uncertain.
- •The US remains India's largest export market with significant trade surplus, but the lack of a deal risks higher tariffs that could hurt businesses and the Indian currency.
- •India aims to protect sensitive agricultural sectors from market-opening commitments, while the Trump administration demands cuts to Russian oil purchases.
Key Questions Answered
Trade talks have stalled due to a plateau in negotiations, a new US law allowing up to 100% tariffs on Indian goods over Russian oil purchases, and an ongoing Section 301 trade investigation by Washington into excess industrial capacity.
The US remains India's largest export market, with goods exports rising to $42.79 billion from April to August, and India enjoying a nearly $34 billion trade surplus in the 2025/26 fiscal year.
India is striving to protect politically sensitive agricultural sectors—such as dairy, poultry, rice, and wheat—from market-opening commitments while securing better tariff treatment and certainty for its exporters.
