What’s Next for US-India Trade Talks? Insights from Commerce Secretary Sunil Barthwal

As the US delegation prepares for its visit to India for the next round of trade talks, Commerce Secretary Sunil Barthwal provides insights into the ongoing negotiations. With five rounds already completed, the focus is on addressing significant tariffs imposed by the US and the implications for various sectors. Both nations aim to enhance bilateral trade significantly by 2030, despite challenges in sensitive areas like agriculture. Stay tuned for updates as the August 25 date approaches.

By Narendra Chaudhary Aug 14, 2025, 17:56 IST

Upcoming US Delegation Visit for Trade Discussions

New Delhi: The outcome of the upcoming US delegation's visit to India for the next phase of trade negotiations will be clarified as the date approaches, Commerce Secretary Sunil Barthwal stated on Thursday.

He emphasized that both nations are actively involved in the ongoing trade discussions.

Regarding the upcoming talks scheduled for August 25, Barthwal mentioned that updates will be provided as the date nears, specifically in the last week of August.

To date, five rounds of discussions have been completed concerning the proposed Bilateral Trade Agreement (BTA), with a US team set to arrive in India for the sixth round.

These comments come in light of the US imposing a significant 50% tariff on Indian products, with President Trump indicating that trade discussions will not resume until the tariff situation is addressed. The US is advocating for increased market access in sensitive sectors like agriculture and dairy, which India is reluctant to concede due to its impact on small farmers' livelihoods.

Despite these challenges, Barthwal reassured that BTA negotiations are ongoing, with engagement occurring at multiple levels, including negotiating teams, ministers, and diplomatic channels.

The US is recognized as a crucial trading partner, and both countries aim to finalize the first phase of the BTA by fall 2025, with a goal of increasing bilateral trade to USD 500 billion by 2030, up from the current USD 191 billion.

As of now, there has been no formal communication from the US regarding the August 25 visit for trade discussions.

In response to inquiries about the effects of US tariffs on Indian exports, officials noted that the commerce ministry is in contact with relevant stakeholders.

The 25% tariff on Indian goods entering the US took effect on August 7, with an additional 25% penalty set to be imposed from August 27 for purchasing crude oil and military equipment from Russia.

Exporters in labor-intensive sectors such as leather, textiles, and jewelry have voiced significant concerns regarding the 50% tariff imposed by the US.

Officials indicated that Indian exporters are exploring alternative markets and strategizing their export plans, although challenges remain. States are also considering ways to assist the exporting community.

Another official remarked on the fluid nature of the global trade landscape.

The 50% tariff on Indian goods is projected to affect exports across nine product categories, including shrimp and apparel, with potential declines of 50-70%, according to the think tank GTRI.

In the fiscal year 2024-25, bilateral trade between India and the US reached USD 131.8 billion, comprising USD 86.5 billion in exports and USD 45.3 billion in imports.