India Studies New US Tariffs While Pursuing Bilateral Trade Deal, Minister Tells Parliament
The government has also taken into account inputs received from states on issues related to import tariffs imposed by the US
New Delhi: Amid the announcement of fresh tariffs by US President Donald Trump on India, the government is studying all the developments and remains engaged with the US in the framework of negotiating a bilateral trade agreement (BTA), Parliament was informed on Friday.
In a written reply to the Rajya Sabha, minister of state for commerce and industry Jitin Prasada said that the government remains in continuous consultation with relevant stakeholders, including farmers, agricultural exporters, industry bodies, ministries/ departments and export promotion councils on issues related to import tariffs imposed by the US.
“The government has also taken into account inputs received from states on issues related to import tariffs imposed by the US, with a view to safeguarding India's trade interests,” the minister said.
The India-US BTA negotiations were launched following the meeting of leaders from both sides in February 2025, where the two countries adopted the ‘Mission 500’ objective of expanding bilateral trade to $500 billion by 2030. Negotiations continued through multiple rounds, and the two countries announced a framework for an interim trade deal on February 2, 2026.
Following the US Supreme Court judgement dated February 20, 2026, invalidating reciprocal tariffs; the reciprocal tariffs are no longer in force. However, the US government has issued Executive Orders imposing 10 per cent tariffs on certain products from all countries under section 122 of the US Trade Act 197.
“The government is studying all the developments and remains engaged with the US government in the framework of negotiations for a BTA which includes recent meetings of negotiating team of both sides in Washington, DC (20-22 April), New Delhi (1-4 June), and the recent visit of the US Trade Representative to New Delhi (22-24 June),” Prasada said.
Major export destinations include Bangladesh, wherein exports increased from $1.7 billion in 2005-06 to nearly $10.6 billion in 2025-26 (41.1 per cent share of SAFTA exports); Nepal, from $0.9 billion in 2005-06 to $7.4 billion in 2025-26 (28.9 per cent share); and Sri Lanka, from $2 billion in 2005-06 to $5.5 billion in 2025-26 (21.4 per cent share).