India-US Continue Trade Deal Talks Amid Ongoing Negotiations
New Delhi confirms latest round of discussions concluded after three days of talks in Washington, with US reducing tariffs on Indian goods from 50% to 18%
Quick Look
- India and the US have agreed to continue engagement on a proposed trade agreement after three days of negotiations in Washington, D.C.
- The latest round of talks concluded on April 23, covering market access, non-tariff barriers, customs procedures, digital commerce, and economic security.
- Under the proposed interim arrangement, the US has reduced tariffs on Indian goods from 50% to 18%.
AI-generated summary
Why It Matters
The India-US trade relationship has faced significant tensions following the imposition of reciprocal tariffs by the US in 2025. A February 2025 Supreme Court ruling invalidated these tariffs under the International Emergency Economic Powers Act, creating a new landscape for trade negotiations. India seeks to reassess portions of the agreement to better protect its interests.
India and the United States have agreed to continue their engagement on a proposed trade agreement, with the government confirming on Friday that the latest round of discussions between officials from both countries wrapped up on April 23 after three days of talks.
On February 7, the two countries had issued a joint statement outlining the framework for an interim trade arrangement aimed at ensuring reciprocal and mutually beneficial commercial ties. That framework also reaffirmed their commitment to pursuing negotiations for a broader India-US Bilateral Trade Agreement.
As part of the process to finalise the trade deal, the Indian delegation travelled to Washington, D.C. for in-person discussions with US officials to work out the specifics of the interim pact and advance talks on the larger bilateral trade agreement.
According to a statement from the Ministry of Commerce and Industry, the negotiations covered a wide range of issues, including market access, non-tariff barriers, technical trade regulations, customs procedures, trade facilitation, investment promotion, digital commerce, and alignment on economic security. The ministry said the discussions were held in a positive and constructive atmosphere, helping both sides make progress on important issues. It added that India and the US have agreed to remain in close contact to preserve the momentum generated during these talks.
Under the proposed interim arrangement, the United States has reduced tariffs on Indian goods from 50% to 18%. Previously, in August last year, Trump had imposed a 25% reciprocal tariff on India, along with an additional 25% penalty linked to India’s purchases of crude oil from Russia.
Yesterday, US Trade Representative Jamieson Greer described India as “a tough nut to crack.” A February 20 ruling by the Supreme Court of the United States invalidated the reciprocal tariffs introduced under the International Emergency Economic Powers Act.
India is seeking to reassess and refine portions of the agreement to better protect its interests amid shifting global tariff dynamics. The 12-member Indian team, led by Darpan Jain, Additional Secretary in the Department of Commerce, held extensive discussions with the US delegation headed by Brendan Lynch. According to reports, the three-day negotiations concluded on Wednesday after focusing on key provisions of the proposed pact.
Speaking before the Committee on Ways and Means in the US Congress, Greer said India has historically maintained strong protections for its agricultural sector, making negotiations particularly challenging. At the same time, he noted that there are areas where both sides could reach common ground, citing distillers dried grains (DDGs) as one such example.
What to Watch
AI outlook — possibilities, not facts
India and US will reach interim trade agreement within the next few months
Likely · Within months
Agricultural sector negotiations will remain the most challenging aspect of finalizing the broader bilateral trade agreement
Very likely · Within months
Open Questions
- What specific portions of the agreement is India seeking to reassess?
- What are the exact terms of the tariff reduction beyond the 18% figure?
- How will the Supreme Court ruling on reciprocal tariffs affect the final agreement?
- What specific agricultural market access concessions is India willing to make?