India to continue U.S. trade negotiations after new American tariffs

Saturday 25 July 2026 - 17:00

By: Sahili Aya

India to continue U.S. trade negotiations after new American tariffs

India has reaffirmed its commitment to negotiating a bilateral trade agreement with the United States, despite the Trump administration's decision to impose new tariffs on imports from the South Asian country.

The announcement came after Washington introduced a 10% tariff on Indian goods as part of a broader package of trade measures affecting 60 trading partners. The new duties, unveiled on Friday, range from 10% to 12.5% and were justified by the U.S. administration on the grounds that the targeted countries had failed to sufficiently address imports allegedly linked to forced labour.

In response, Indian officials said New Delhi would continue engaging with Washington in an effort to conclude a comprehensive bilateral trade agreement, signaling that the latest tariffs would not halt ongoing economic dialogue between the two countries.

The decision reflects the strategic importance of the U.S.-India economic relationship, with both governments seeking to expand trade and investment despite recurring disagreements over tariffs, market access and regulatory policies.

Trade negotiations between the world's largest and fifth-largest economies have gained increasing significance in recent years as businesses seek more resilient supply chains and closer commercial ties. A bilateral agreement is expected to address a wide range of issues, including tariffs, customs procedures, market access and investment opportunities.

The latest U.S. measures form part of a broader trade policy introduced by the Trump administration targeting imports from dozens of countries. Washington argues that the new tariffs are intended to encourage stronger action against goods produced with forced labour and to reinforce supply chain compliance.

For India, maintaining dialogue remains a priority as policymakers seek to preserve export competitiveness while advancing a long-term trade framework with one of the country's largest commercial partners.

Although the new tariffs introduce fresh uncertainty for exporters, both sides have indicated that negotiations will continue, suggesting that economic cooperation remains a shared objective despite the latest trade dispute.