India and US maintain trade commitment amid potential 100% tariff legislation

India and the United States remain committed to advancing a bilateral trade agreement (BTA) despite potential economic disruptions caused by pending U.S. legislation. Indian Commerce Secretary Rajesh Agrawal stated that both nations are dedicated to the agreement, noting that the U.S. legislative process regarding tariffs is an internal matter.

The tension stems from the Lindsey O. Graham Sanctioning Russia Act, which passed the U.S. Senate. This legislation could allow the U.S. President to impose tariffs of up to 100 percent on the top five importers of Russian gas and oil to penalize countries that help finance Russia’s war in Ukraine.

While trade officials from both countries have discussed market access, digital trade, and supply chain resilience, Indian suppliers expressed concern over these potential duties. Some manufacturers, such as Mumbai-based Banbury Exports, indicated that 100 percent tariffs on goods like apparel could effectively close the U.S. market to Indian exporters.