There could be just a month left for the trade deal between India and the United States to be finalized! The two sides entered a fresh round of talks aimed at revisiting and reworking the proposed bilateral agreement after Washington held high-level trade discussions in New Delhi on Tuesday, following recent changes in US tariff policy that had disrupted the earlier negotiated framework.Commerce and Industry Minister Piyush Goyal met US Trade Representative Jamieson Greer as both sides pushed to finalize an interim trade deal before July 24, when Washington’s temporary 10% tariff on imports from trading partners is due to expire.In a post on Twitter, Goyal said, “Jamieson Greer, Sergio Gore and their delegation are warmly welcomed to the Department of Commerce. Looking forward to fruitful discussions on the bilateral trade agreement between (India and the US).”Greer is on a two-day visit, which comes on the heels of Prime Minister Narendra Modi and US President Donald Trump meeting on the sidelines of the G7 summit in France on June 17, a meeting that brought new momentum to the ongoing trade talks.The US Embassy in India said in a social media post that the trade partnership will benefit both countries.It said, “Strong ties create American manufacturing jobs while supporting India’s growth as the world’s largest democracy. From energy security to tech talent exchanges, we are building the future together.”In another post, the embassy said, “@USTradeRep Jamison Greer and Indian Minister of Commerce and Industry @PiyushGoyal met today in New Delhi to advance negotiations on the interim agreement initiated by President Trump and Prime Minister Modi.”It said the US is focused on securing a fair and reciprocal trade deal that expands market access for US exporters while providing benefits for both parties.
what’s on the table
The discussion focused on reworking a framework agreement announced in February, which was later built on tariff commitments affected by a US Supreme Court decision that struck down sweeping tariffs announced by Trump.For India, securing preferential tariff treatment remains a key priority after the US tariff policy changes reduced the expected benefits on competing economies, including Vietnam and other ASEAN countries.Under the February framework, the US had agreed to reduce tariffs on Indian goods to 18%, which was lower than the rates imposed on many competing exporters.India had also proposed reducing or eliminating tariffs on a range of US industrial and agricultural goods, including dry distillers’ grains, red sorghum for animal feed, tree nuts, fruits, soybean oil, wines and spirits.India has also indicated plans to purchase large-scale purchases from the US, including energy products, aircraft and parts, precious metals, technology goods and coking coal worth $500 billion over the next five years.Finance Minister Nirmala Sitharaman also held a separate meeting in New Delhi with the US delegation led by Jameson Greer.According to the Finance Ministry, both sides exchanged views on strengthening bilateral trade and economic cooperation with a focus on new growth opportunities and deeper commercial engagement.Sources said that Commerce Secretary Rajesh Aggarwal and India’s chief negotiator Darpan Jain were also present in the meeting held at Commerce Bhavan, the headquarters of the Commerce Ministry.This followed the chief negotiator-level talks held in New Delhi between June 2 and June 4.
pending interruptions
In February, the two sides outlined the phase one agreement based on tariff assumptions, which were later changed.On February 20, the US Supreme Court struck down the sweeping tariffs. Due to this, the US administration imposed a temporary 10% tariff under Section 122 of the Trade Act on all countries for 150 days starting from February 24, which is scheduled to expire on July 24.The February joint statement also includes a clause that allows any country to modify commitments if tariff conditions change.Meanwhile, the US in March launched two Section 301 investigations covering nearly 60 economies, including India, to examine issues related to industrial capacity and labor practices in global supply chains.
trade talks so far
On June 15, Commerce Secretary Rajesh Aggarwal said that discussions were focused on finalizing the framework agreement.On June 17, US President Donald Trump said that the two countries were “very close” to concluding the agreement.Earlier on June 5, Piyush Goyal had said that India and the US are moving towards closing all pending issues in the interim trade agreement and are expected to implement the first phase of the bilateral trade agreement (BTA) by the middle of next month.BTA negotiations were formally launched on February 13, 2025.At the time the initial framework was agreed, India had a comparative advantage over many regional competitors, including ASEAN countries, Sri Lanka, Pakistan and Bangladesh.The United States remains India’s second largest trading partner in 2025-26.India’s exports to the US rose 0.92% to $87.3 billion last fiscal despite higher tariffs, while imports rose 15.95% to $52.9 billion, narrowing the trade surplus to $34.4 billion from $40.89 billion the previous year.
