Lok Sabha Question No. 3948 (UNSTARRED), answered on 2026-03-17
Subject: US Tariff and Tax Policy
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Suresh Kumar Shetkar

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 3948 ANSWERED ON 17/03/2026

## US TARIFF AND TAX POLICY

## 3948.  SHRI SURESH KUMAR SHETKAR:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether the Government has taken note of recent changes in US tariff and tax policies affecting Indian exports and if so, the details thereof;
- (b) whether  the  Government  has  assessed  the  proposed  trade  arrangement results in unequal tax obligations between India and the United States, if so, the findings thereof;
- (c) whether Indian industries, particularly textiles, agriculture and MSMEs, have expressed concerns regarding adverse impacts of the proposed agreement, if so, the details thereof;
- (d) whether consultations were held with stakeholders before finalising negotiations  with  the  United  States,  if  so,  the  details  thereof  and  if  not,  the reasons therefor;
- (e) whether the Government proposes to put the proposed US-India trade deal on hold in view of recent policy changes and uncertainties, if so, the details thereof and if not, the reasons therefor; and
- (f) whether  India  intends  to  renegotiate  the  agreement  to  ensure  reciprocity, protection of  domestic industries and fair taxation principles, if so, the timeline thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

## वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद ) (SHRI JITIN PRASADA)

(a) & (d) The Government continues to work with all stakeholders including exporters and industry to mitigate the impact of the tariff measures of the United States (U.S.) on  Indian  exports  through  a  comprehensive  multi-pronged  strategy  encompassing intensive engagement with the U.S. Government for a mutually beneficial India-U.S. Bilateral Trade Agreement, immediate relief through Trade relief measures of RBI, Credit Guarantee Scheme for Exporters, enhancement of domestic demand through next generation GST reforms, Export Promotion measures such as the new Export Promotion Mission which provide support and assistance to our exporters, pursuing Free Trade Agreements (FTAs) with new countries and better utilization of existing FTAs.  It  is  expected  that  these  measures  will  also  enhance  diversification  and resilience in India's trade relationships.

(b) & (c) India and the United States announced a trade deal on 2nd February 2026. A Joint Statement for the same was released on February 07 2026.  On February 07 2026, 25% additional ad valorem tariffs imposed by the U.S. on certain India's exports citing India's imports of Russian oil were removed. Subject to the conclusion of the Interim Agreement, the U.S. will provide preferential market access to Indian goods, including  textile  and  apparel,  leather  and  footwear,  plastic  and  rubber,  organic chemicals, home décor, artisanal products, certain machinery, etc. Further, the U.S. will reduce additional tariff on India to 0% on a wide range of products, such as gems and diamonds, aircraft parts, generic pharmaceuticals, certain machinery and parts, vegetable saps, certain instruments and apparatus, certain plastic and rubber, certain auto  parts,  etc. The  agreement  will  boost  MSME  exports  in  marine  products, processed  food,  textiles,  leather,  and  handicrafts  by  providing  preferential  market access, while protecting sensitive sectors. The interests of all sensitive sector such as dairy and agriculture have been protected. Further, information regarding the interim trade deal is also available at the following web link: https://www.commerce.gov.in/wpcontent/uploads/2026/03/FTAs-achievement.pdf.

(e)  &  (f)  Pursuant  to the U.S.  Supreme Court judgement dated 20 th  February 2026 invalidating  reciprocal  tariffs,  the  reciprocal  tariffs  are  no  longer  in  force.  The  U.S. Government has issued Executive Orders imposing 10% tariffs on certain products from  all  countries.  The  Government  is studying  all  the  developments  and  remains engaged with the U.S. Government.

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