India and the United States are continuing negotiations on a bilateral trade agreement, with Commerce Minister Piyush Goyal saying the discussions are progressing quickly and in a positive direction. Speaking on Tuesday, September 22, Goyal indicated that both sides remain engaged but did not provide specific details about the issues currently being negotiated.
The talks are taking place against the backdrop of new US measures targeting Russia and its major energy customers. US President Donald Trump has signed legislation giving his administration the authority to impose tariffs of as much as 100% on the largest purchasers of Russian oil and gas. India and China are among the biggest buyers of Russian energy.
The potential tariffs have added another issue to the broader India-US economic discussions. Goyal said on Monday that India would first examine the provisions and implications of the newly enacted legislation before holding discussions on the matter.
Responding to questions about the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, Goyal said India would review the emerging details and address the issue at an appropriate stage. The legislation does not automatically impose a 100% tariff. Instead, that figure represents the maximum tariff that the US administration could potentially apply under the law.
Despite the uncertainty surrounding the Russia-related measures, negotiations between New Delhi and Washington on their trade agreement are continuing. Officials from both countries remain in contact, while Goyal is expected to meet US Trade Representative Jamieson Greer during the G20 Trade Ministerial in Milwaukee later this month.
Meanwhile, India’s latest merchandise trade figures show an improvement in August. The country’s merchandise trade deficit declined to $26.86 billion, compared with $27.20 billion during the same month a year earlier. The deficit also fell from nearly $32 billion in July.
India’s merchandise exports increased 26.12% year over year in August to $43.18 billion, while imports rose 14.1% to $72.67 billion. It marked the first time during the period that export growth outpaced import growth.
Commerce Secretary Rajesh Agrawal attributed the export expansion to stronger shipments of engineering goods, petroleum products, chemicals and textiles. He said major demand came from the United States, European Union and BRICS economies.
The developments place India-US trade negotiations alongside broader questions involving energy trade, tariffs and India’s export performance as both countries continue working toward a bilateral agreement.
