India-US trade talks moving fast amid potential tariffs on Russian oil buyers

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Commerce Minister Piyush Goyal on Tuesday appeared upbeat over progress in talks between India and the United States for a bilateral trade agreement aimed at benefiting both countries. Goyal said talks with the United States were "moving fast and in a good direction", without divulging any details about the negotiations.

The statement comes at a time when US President Donald Trump has signed a sweeping sanctions bill, taking aim at Russia's economy by punishing major purchasers of its oil and gas. The new law gives Trump broad powers to levy tariffs of up to 100 per cent on the top five purchasers of Russian oil and gas. China and India are among the top two buyers of Russian oil.

Goyal had said on Monday that India would first study the details of US tariffs that could be imposed on buyers of Russian oil under the new law, before taking up discussion on the matter "at an appropriate time".

The minister was responding to questions raised by journalists on the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 that has just been signed into law by Trump. The measure could expose major buyers such as India and China to higher duties on their exports to the US.

"The details are now emerging. We will study them and discuss the matter at an appropriate time," he said.

The 100 per cent tariff is not an automatic duty, but the maximum tariff that the US could impose under the new law.

Meanwhile, India and the US continue to negotiate a bilateral trade agreement, with both sides remaining in regular touch on the issue. Goyal is expected to hold bilateral discussions with US Trade Representative Jamieson Greer during the G20 Trade Ministerial in Milwaukee later this month.

India's merchandise trade deficit narrowed to $26.86 billion in August from $27.20 billion in the same month last year as the growth of exports outpaced imports for the first time, according to official figures released last week.

Sequentially too, the trade deficit in August was lower than the corresponding figure of close to $32 billion in July this year.

Merchandise exports during August recorded a robust 26.12 per cent growth to $43.18 billion, while imports grew 14.1 per cent to $72.67 billion.

"Export growth was driven by engineering goods, petroleum products, chemicals and textiles, with the major demand coming from the US, EU and BRICS economies," Commerce Secretary Rajesh Agrawal said.

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