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India-US Trade Deal Nears Understanding, Tariff Framework Remains Key Hurdle: Jaishankar
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CNBC TV18•29-09-2026, 13:44
India-US Trade Deal Nears Understanding, Tariff Framework Remains Key Hurdle: Jaishankar
- •External Affairs Minister S Jaishankar stated that India and the US have reached a broad understanding on a proposed trade agreement.
- •The main obstacle to finalizing the deal is changes to Washington’s tariff framework, particularly after reciprocal tariffs were struck down.
- •The US Section 301 process, which involves an additional 10% tariff on Indian imports due to forced labor concerns, has created ‘bumps’ in the relationship.
- •Commerce and Industry Minister Piyush Goyal will travel to the US to meet with US Trade Representative Jamieson Greer to advance negotiations.
- •India is seeking a preferential tariff position for its exporters, a key point of discussion for an interim bilateral trade agreement.
Key Questions Answered
External Affairs Minister S. Jaishankar stated that while a broad understanding has been reached, changes to Washington’s tariff framework remain a hurdle to concluding the pact.
The US tariff framework changed after reciprocal tariffs imposed by Washington were struck down. Following an investigation into goods produced with forced labour, the US introduced a Section 301 process and imposed an additional 10% tariff on imports from India.
Commerce and Industry Minister Piyush Goyal is traveling to the US to hold talks with USTR Jamieson Greer to advance negotiations for the proposed interim bilateral trade agreement. He is expected to push for a preferential tariff position for Indian exporters rather than just a lower headline tariff.
