Winning Bizness Desk
Mumbai.The United States has made it clear that India must stop importing oil from Russia if it wants a trade deal. According to an ET report, Washington has tied this condition to ongoing talks between the two countries. India, however, has indicated flexibility by agreeing to ease restrictions on genetically modified maize imports and increase purchases of defense products.
Talks continue for early trade agreement
The Indian government stated that under Commerce Minister Piyush Goyal’s leadership, a delegation held constructive talks with US officials. Both sides discussed various aspects of the agreement and shared their respective roadmaps. The consensus was to continue negotiations to conclude the trade deal at the earliest.
Tariff tensions restart negotiations
Talks had resumed on 16 September after US President Donald Trump imposed a 50 percent tariff on Indian products. An American delegation visited New Delhi, where both sides engaged in seven hours of discussions. The Indian government had then said that the meeting involved positive deliberations on multiple trade issues and stressed that the aim is to strike a mutually beneficial deal.
Indian exports hit hard by tariff hikes
The US has already imposed heavy duties on Indian exports—25 percent as a counter-tariff and another 25 percent as a penalty for continued oil purchases from Russia. Together, these measures have severely impacted India’s exports worth nearly Rs 85,000 crore. Sectors including textiles, gems and jewellery, furniture and seafood have borne the brunt, making Indian products costlier in the US market. Though tensions had risen, Trump’s recent statements suggested some softening of stance.
Medicines face new 100% tariff
On top of existing levies, Trump on Friday announced a 100 percent tariff on branded and patented medicines, effective from 1 October 2025. Earlier, medicines had been excluded from tariff hikes, but the latest measure will affect India’s pharmaceutical exports as well. Currently, Indian medicines constitute a major share of exports to the US, and this move could dent the industry.
7 summary pointers
- US demands India stop Russian oil imports for trade deal progress.
- India ready to allow GM maize imports and increase defense purchases.
- Commerce Minister Goyal-led delegation held constructive talks with US officials.
- Negotiations resumed on 16 September after Trump’s 50% tariff move.
- Tariffs have hit Indian exports worth nearly Rs 85,000 crore.
- Sectors like textiles, jewellery, furniture and seafood face sharp cost increases.
- Trump announces 100% tariff on branded and patented medicines from October 2025.
