India Will Sign US Trade Deal After Washington Readies New Tariff Structure

16th March 2026 at 6:05 PM

1 minute read

New Delhi : The proposed trade agreement between India and the United States will be formally signed only after a new tariff architecture between the two countries is finalised, the government said on Monday. Commerce Secretary Rajesh Agrawal said India and the US are currently discussing the finer details of the pact, indicating that negotiations are still underway. We are talking right now on details with the US, Agrawal said, adding that the actual signing of the India-US trade deal will be done when the new architecture of tariffs is in place.

Imports, however, rose sharply by 24.11 per cent to USD 63.71 billion during the month, up from USD 51.33 billion recorded a year earlier. As a result, the trade deficit widened to USD 27.1 billion in February. Despite the monthly dip, Agrawal said India’s export performance has remained resilient in the face of global uncertainties. During the April–February period of FY26, the country’s exports rose 1.84 per cent to USD 402.93 billion. Imports during the same period increased by 8.53 per cent to USD 713.53 billion, reflecting strong domestic demand as well as higher inbound shipments.

The trade agreement is aimed at securing comparative and preferential access to each other’s markets. When the framework for the first phase of the deal was announced, the proposed tariff level for Indian goods entering the US market was about 18 per cent. Officials said that rate would have placed India at a competitive advantage compared with several rival exporters such as China, Vietnam and Thailand.

The final tariff levels could still change depending on how the US redesigns its broader tariff architecture. “If other countries end up with tariffs of 19, 20 or 21 per cent, India may remain at 18 per cent. But if tariffs for others are lowered, India’s rate could also change,” an official said. Agrawal said discussions are continuing on multiple elements of the agreement, including non-tariff barriers and certain provisions related to Section 232 tariffs.