‘Trump may levy fresh tariffs after India-US sign trade deal’:India’s commitment to buy ₹47.50 lk cr worth US goods will further weaken rupee, say experts

Citing the US government’s recent international actions, the global research body, the GTRI, said that even if the India-US interim trade deal is signed, there is no guarantee that US President Donald Trump will not levy new tariffs on Indian goods in the future. The global think tank’s assumption is based on recent statements made by the Trump administration that India failed to prohibit (stop) the import of goods produced by countries leveraging forced labour. The US may impose additional 12.5% tariffs on India even after the signing of the interim trade deal as the Trump administration had earlier found India guilty of encouraging forced labour in investigations conducted by invoking Section 301. What is Section 301? According to the Trump administration, Section 301 empowers the US president to levy tariffs on countries failing to prohibit forced labour and India has been found guilty of this crime as per his administration’s investigations. The US Trade Representative had proposed slapping 12.5% additional duties on 54 countries, including India. The action had followed investigations launched against 60 countries over what the USTR described as their failure to impose and effectively enforce bans on imports made with forced labour. Even if a deal is signed, there is no guarantee that new tariffs will not follow. The United States has already launched Section 301 investigations against trading partners such as the EU and Japan despite existing trade agreements. -GTRI, founder, Ajay Srivastava The research body added that a tariff of 25% may be reduced to 18% if New Delhi signs the US BTA. What US wants from India in the interim trade deal? According to public data available on proposals put forward by the Trump administration in the negotiation rounds held by both sides, Washington wants India to make permanent commitments on market access for agriculture, energy, defence equipment, aircraft, digital services and advanced technologies, while also encouraging India to purchase up to $500 billion (₹47.50 lakh crore) of American goods over five years, limit digital regulations and align more closely with US economic and security objectives. In return, the main US concession has been a reduction in reciprocal tariffs from 25% to 18%. India’s commitment to buy ₹47.50 lakh crore worth US goods will further weaken rupee: Economist Devinder Sharma Global trade policy expert, Devinder Sharma, said that India’s commitment to buy ₹47.50 lakh crore worth of US goods over a period of five years will further weaken the value of Indian currency, rupee. The Indian rupee has witnessed heightened pressure sustained by selling from foreign portfolio investors (FPIs), heightened global trade tensions, and rising import bill. The rupee has remained under stress since the beginning of 2026. In December 2025, it had breached the 90-per-dollar mark for the first time. Recently, it fell to as low as 96 against the greenback.