What’s Next for India and the US in Their Trade Talks? Insights from Recent Discussions

Recent discussions between India and the US regarding their bilateral trade agreement have highlighted significant developments. Commerce Minister Piyush Goyal and US Trade Representative Jamieson Greer are working to finalize the framework of the agreement, with expectations to implement the first phase soon. The evolving tariff landscape and India's competitive position in trade are crucial factors in these negotiations. As both nations aim for a mutually beneficial agreement, the outcome could reshape their economic relationship. Stay tuned for more updates on this pivotal trade dialogue.

By Narendra Chaudhary Jun 23, 2026, 12:06 IST

Bilateral Trade Talks Between India and the US

New Delhi: On Tuesday, Commerce and Industry Minister Piyush Goyal engaged in discussions with US Trade Representative Jamieson Greer regarding the initial phase of their bilateral trade agreement.

Greer is currently in New Delhi for these crucial trade negotiations, as confirmed by an official source.

The meeting, taking place at Vanijya Bhawan, the headquarters of the Ministry of Commerce and Industry, also includes Commerce Secretary Rajesh Agrawal and Chief Negotiator Darpan Jain, who serves as Additional Secretary in the Department of Commerce.

This meeting follows earlier discussions held in the national capital from June 2 to June 4.

Agrawal indicated on June 15 that the focus of the talks would be on finalizing the framework of the trade deal.

On June 17, US President Donald Trump remarked that both nations are 'very close' to finalizing the trade agreement.

Earlier, on June 5, Goyal mentioned that India and the US are nearing the conclusion of the interim trade agreement, with expectations to implement the 'very, very vibrant' first phase of the Bilateral Trade Agreement (BTA) by mid-next month.

In February, both countries outlined the framework for the first phase of the BTA, which was influenced by the 50% tariffs the US had placed on Indian goods. However, on February 20, the US Supreme Court invalidated these extensive tariffs imposed by the Trump administration.

Subsequently, the Trump administration introduced a 10% tariff under Section 122 of the Trade Act on all countries for a duration of 150 days starting February 24, which is set to expire on July 24.

This meeting is particularly significant due to the recent changes in the US tariff structure.

India and the US officially commenced BTA negotiations on February 13, 2025, and on February 7, 2026, they announced a framework for an interim agreement aimed at reciprocal and mutually beneficial trade.

According to this framework, the US agreed to lower tariffs on Indian goods from 50% to 18%, while also eliminating the 25% tariffs on Indian products related to Russian oil purchases, with plans to further reduce the remaining tariffs to 18%. However, the US Supreme Court ruled against these tariffs.

Under the agreed framework, India proposed to either eliminate or reduce tariffs on a variety of US industrial goods and numerous food and agricultural products, including Dried Distillers’ Grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits.

Additionally, New Delhi has expressed its intention to acquire USD 500 billion worth of US energy products, aircraft and parts, precious metals, technology products, and coking coal over the next five years.

As the tariff situation evolves in the US, both parties are reassessing the agreement's framework.

The joint statement from February includes a provision that allows either country to modify its commitments in response to changes in agreed tariffs.

Meanwhile, the US Trade Representative initiated two Section 301 investigations on March 11 and 12, covering around 60 economies. One investigation focused on alleged excess industrial capacity, while the other addressed forced labor issues in global supply chains, with India included in both inquiries.

When the framework for the first phase of the agreement was established, India held a competitive edge over its rivals, including ASEAN nations (Indonesia, Malaysia, Singapore, Thailand, Philippines, Brunei, Vietnam, Laos, Myanmar, Cambodia), Sri Lanka, Pakistan, and Bangladesh.

Under the framework, the US announced an 18% tariff on Indian goods, while tariffs on competing countries ranged from 19% to 20%. However, currently, all nations are subject to the same 10% additional levy.

It is crucial for India to secure a competitive advantage over its rival nations regarding tariffs in the trade agreement with the US.

In the fiscal year 2025-26, the US was India's second-largest trading partner.

India's exports to the US saw a slight increase of 0.92% to USD 87.3 billion, while imports surged by 15.95% to USD 52.9 billion. Consequently, the trade surplus decreased to USD 34.4 billion in 2025-26, down from USD 40.89 billion in 2024-25.