Regarding the proposed trade agreement with the US, the central government on Monday (March 16, 2026) said that the formal signing will take place only after the new tariffs are decided between the two countries. “We are currently negotiating the details of this agreement with the US,” Commerce Secretary Rajesh Aggarwal said. He further said, “The India-US trade agreement will be signed only after the new tariff structure is finalized. There is no deadlock in this, nor is it that no agreement has been reached.”
Decline in India’s goods exports
The Centre’s statement came at a time when the government said that in February, India’s merchandise exports witnessed a marginal decline of 0.81 per cent to US$ 36.61 billion. However, this month (March) imports recorded a huge growth of 24.11 percent, reaching US$ 63.71 billion. This figure is more than US$51.33 billion recorded a year ago. Rajesh Aggarwal stressed that despite global uncertainties, India’s exports remain strong.
Challenges increased due to Middle East conflict
He said that during the first 11 months (April-February) of the financial year 2025-26, the country’s exports grew 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 potential challenges for exports in the coming weeks. He said March may see a decline in shipments due to logistics challenges arising from the ongoing crisis in the Middle East.
Trump’s new step on tariffs
After receiving a setback from the US Supreme Court regarding its tariff policy, the Trump administration has taken a new strategic step. America has launched a major trade investigation against 16 countries. India is also among the countries included in this list. The United States has targeted India and 15 other countries over excessive industrial capacity in manufacturing. Once the investigation is complete, tariffs or other trade measures may be implemented against these countries.
US court shocks Trump regarding tariffs
India and the US announced last month that they have finalized a framework for the first phase of a bilateral trade agreement. Under this framework, the US had agreed to reduce tariffs on Indian goods by up to 18 percent. However, the tariff structure in the US has changed after the US Supreme Court struck down the sweeping tariffs previously imposed by President Trump. Following this decision, Trump imposed a 10 percent tariff on all countries for a period of 150 days, effective February 24. In view of these developments, the meeting between the chief negotiators of India and the US has been postponed.
