India is actively engaging with the United States to find a solution to the trade agreement following the US government’s imposition of additional tariffs on Indian imports. According to a CNBC TV18 report that cited government sources, India has been given a 21-day window to negotiate a solution to the escalating trade tensions, with efforts focused on finding a mutually beneficial resolution within the broader framework of the Bilateral Trade Agreement (BTA).
“India hopes to work towards finding a solution which is a win-win for both sides,” sources told the publication.
On Wednesday, US President Donald Trump imposed additional ad valorem tariffs at 25 per cent on India, stating that India’s imports of Russian oil is fuelling the war with Ukraine.
After this announcement, the total tariff by the US on India now stands at 50 per cent which is one of the highest in the world. Brazil has also been imposed with 50 per cent tariffs.
Furthermore, sources maintained that buying Russian oil may not be the only reason for Trump to be announcing additional tariffs on India. “Purchase of Russian may not be the only reason for the US to impose additional tariffs,” they told CNBC TV18, adding that the Indian oil companies have been increasingly buying oil from the US in recent months.
“Oil imports from the US have significantly gone up in the last six months, by approximately 120 per cent,” they added, maintaining that Indian Oil PSUs have been purchasing crude oil from all over the world based on competitive prices.
India’s import of crude oil from the US has substantially increased – surging 51 per cent in the first half of 2025 and 114 per cent on-year in the April-June quarter. In June 2025, India’s crude imports from the US rose by 23 per cent compared to June 2025, with the US share of India’s total oil imports growing from 3 per cent last year to 8 per cent in July 2025.