 "President Trump has threatened to hike tariffs on India 'substantially' for importing Russian oil, accusing New Delhi of benefitting from Moscow's fuel during the continuing war in Ukraine. File image/Reuters")
India is ‘actively involved’ in discussions for a Bilateral Trade Agreement (BTA) with the United States, with the goal of expanding trade and investment and deepening the commercial relationship to promote growth, national security, and job creation, said Jitin Prasada, Minister of Commerce, in a written response to the Lok Sabha on August 5.
The answer came only hours after India issued a strong statement in response to US President Donald Trump’s social media post threatening New Delhi with extra tariffs on its oil trade with Moscow. President Trump has threatened to hike tariffs on India ‘substantially’ for importing Russian oil, accusing New Delhi of benefitting from Moscow’s fuel during the continuing war in Ukraine.
The Trump administration has yet to elaborate on the extra taxes.
Negotiations for a trade agreement between India and the United States began in March 2025, and five rounds of discussions have been place thus far, the most recent in July. Talks for a mini-version of a deal before August 1 appear to have failed, as divergences continued, particularly on agriculture.
Regarding the efforts being taken by the government to protect critical industries such as agriculture, Prasada stated that international trade agreements allow for the inclusion of sensitive, negative, or exclusion lists - groupings of commodities that get restricted or no tariff concessions.
On August 5, Prasada said, “In addition, in case of surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports within the periods as mutually agreed to by the parties under FTAs.”
On July 30, Trump declared a 25 percent tax and an undisclosed fine on India for acquiring Russian energy supplies and defence equipment.
Responding to the ongoing trade discussions with the United States, MoS for Agriculture Ramnath Thakur stated that the government has always prioritised farmers’ livelihoods and interests, as well as food security concerns, while negotiating deals with international partners, including the United States.