India and US Commit to Trade Deal Amid Sanctions Risk

The Government of India and the United States are continuing negotiations for a Bilateral Trade Agreement (BTA) despite new legislative threats regarding Russian energy imports. Indian Commerce Secretary Rajesh Agrawal affirmed on August 13, 2026, that both nations maintain regular contact to advance the framework established in February.

This commitment follows the US Senate's passage of a sanctions bill that would authorize President Donald Trump to impose tariffs of up to 100% on the top five importers of Russian oil and gas, a group that includes India. Agrawal described the bill as an internal US legislative process and declined to comment on its specific potential impact. India is already managing a 10% additional duty on certain exports resulting from a US Section 301 investigation into forced labor.

US Presidential Counsellor Peter Navarro suggested that the personal relationship between President Trump and Prime Minister Narendra Modi would facilitate a resolution to the Russian oil tariff disputes. Earlier in June, US Trade Representative Jamieson Greer and Indian Commerce and Industry Minister Piyush Goyal reviewed BTA elements, with Goyal noting that the first tranche of the agreement would operate once India secures a comparative advantage over its competitors.