India will sign a trade agreement with the United States only after Washington finalises a new global tariff framework, Commerce Secretary Rajesh Agarwal said, indicating that ongoing changes in US tariff policy have delayed the expected March timeline for the deal. Agarwal said the US is restructuring its tariff system worldwide and any agreement with India will have to be aligned with that structure. He also confirmed that India continues to increase purchases of Russian oil and that talks with Canada on a free trade agreement are progressing.
US Tariff Overhaul Delaying Trade Pact
Agarwal said the proposed trade deal with the United States was earlier expected to be signed in March, but the situation has changed due to developments in US tariff policy.
He noted that tariffs under the International Emergency Economic Powers Act (IEEPA) no longer exist in the same form following recent rulings by the US Supreme Court. Instead, a global tariff structure of around 10% is now in place under Article 122, and the US is attempting to redesign the broader tariff architecture.
According to him, any agreement signed by India will have to be negotiated against this new framework.
“The US is trying to recreate a tariff architecture globally. Once that architecture is in place, it will be better to sign the deal. The actual signing will happen only after the new global tariff structure is finalised,” Agarwal said.
He added that both sides remain ready to conclude the agreement once the new system is clarified, saying the timing will depend on when the US completes the process.
Russia Oil Purchases Up, Canada FTA Talks Continue
On energy trade, Agarwal confirmed that India has increased imports of crude oil from Russia.
“We are buying Russian oil. There has been an increase in buying from Russia,” he said, without elaborating on volumes or timelines.
He also provided an update on the proposed Free Trade Agreement with Canada, stating that negotiations are ongoing through virtual meetings.
Both sides are expected to hold further online discussions later this month, while the first round of in-person negotiations is likely to take place in April or May.
Officials said the Canada talks are moving separately from the US negotiations but remain part of India’s broader effort to expand trade partnerships.
