US Tariff Review and Energy Diversification Feature in India‑US Trade Talks

New Delhi, August 13 – The ongoing dialogue between India and the United States over the Bilateral Trade Agreement (BTA) is being shaped by two major issues: a U.S. tariff review and India’s expanding energy import strategy.

Commerce Secretary Rajesh Agrawal confirmed that both governments are committed to the February‑era framework and continue to hold frequent consultations. However, a Section 301 investigation in the United States has led to an extra 10 percent duty on many Indian products, citing concerns over forced labour.

In Washington, lawmakers have passed a measure that may grant the president authority to impose tariffs up to 100 percent on imports from nations that are significant purchasers of Russian oil, a category that now includes India. The move reflects Western apprehensions that Russian oil revenues finance the conflict in Ukraine. India’s crude‑oil imports from Russia surged this year, representing more than half of its total oil intake in July.

Agrawal labelled the tariff bill as a purely American legislative matter and declined to elaborate. He also highlighted India’s energy diversification efforts after the Hormuz Strait disruptions. The country’s crude‑oil sourcing network has expanded from 27 to 41 countries, while LNG supply partners have increased from six to fifteen, with the United States providing a substantial share.

Securing over 85 percent of its crude‑oil needs through imports makes diversification essential for India. A broader supply base reduces exposure to sudden geopolitical shocks and helps stabilise the nation’s energy security amid a volatile global market.