India, US Begin Trade Talks to Revise Bilateral Deal Following Tariff Policy Changes

Piyush Goyal and USTR Jamieson Greer discuss interim trade pact as both countries seek to conclude agreement before July 24

India and the United States have begun high-level negotiations to recalibrate the proposed bilateral trade agreement after changes in U.S. tariff policy affected the framework negotiated earlier this year.

Commerce and Industry Minister Piyush Goyal met United States Trade Representative (USTR) Jamieson Greer in New Delhi, as both sides worked toward finalising an interim trade pact before July 24.

In a post on X, Piyush Goyal said:

"Warm welcome to @USTradeRep Amb Jamieson Greer, @USAmbIndia Amb Sergio Gor and their delegation to @DoC_GoI. Looking forward to productive discussions on the bilateral trade agreement between 🇮🇳 (India & US),"

Greer's two-day visit follows the meeting between Prime Minister Narendra Modi and U.S. President Donald Trump in France on June 17, their first meeting in more than a year. The latest discussions are intended to advance negotiations that both countries consider important for strengthening economic ties.

The current negotiations focus on revising the framework agreement announced in February, after a U.S. Supreme Court ruling struck down sweeping tariffs introduced by the Trump administration. The meeting at Vanijya Bhawan is also being attended by Commerce Secretary Rajesh Agrawal and India's chief negotiator Rajesh Agrawal, following chief negotiator-level discussions held in New Delhi from June 2–4.

Securing preferential tariff treatment has become a key objective for India after changes in U.S. trade policy affected the tariff advantage previously available over competing exporters, including Vietnam and other ASEAN economies.

Under the February framework, the United States had agreed to reduce tariffs on Indian goods to 18 per cent, below duties applicable to several competing exporters. However, after the court ruling and Washington's decision to impose a temporary 10 per cent tariff on imports from all countries, both sides agreed to revisit key elements of the arrangement.

Following discussions on June 15, Rajesh Agrawal stated that negotiations would focus on updating the framework agreement. On June 17, President Donald Trump said the two countries were "very close" to finalising the trade agreement.

Earlier, on June 5, Piyush Goyal said India and the United States were moving towards resolving all outstanding issues in the interim trade agreement, with both countries expected to execute the first phase of the Bilateral Trade Agreement (BTA) by the middle of the following month.

India and the United States formally launched BTA negotiations on February 13, 2025. Later that month, the U.S. Supreme Court, on February 20, struck down sweeping tariffs that had been imposed on Indian goods, leading the U.S. administration to introduce temporary 10 per cent tariffs under Section 122 of the Trade Act on imports from all countries for 150 days, effective February 24 and due to expire on July 24.

Under the earlier framework, India had proposed eliminating or reducing tariffs on all U.S. industrial goods and a broad range of food and agricultural products, including Dried Distillers' Grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

India has also expressed interest in purchasing approximately $500 billion worth of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.

With changes in the U.S. tariff framework, both countries are now working to revise the earlier agreement while continuing negotiations on the interim trade pact.