Stories
India-US Trade Deal Nears End, But Not Imminent, USTR Greer Cautions
- •US Trade Representative Jamieson Greer stated the India-US trade agreement is in its "short strokes," nearing completion but not yet imminent.
- •Greer indicated that President Trump and Prime Minister Modi might speak "very soon" to review the progress of the negotiations.
- •Commerce and Industry Minister Piyush Goyal previously said the agreement was "almost done and dusted," awaiting competitive tariff advantages for India.
- •Greer and Goyal held constructive discussions on the sidelines of the G20 Trade Ministers’ Meeting in Milwaukee.
- •The February framework for an interim trade agreement, which includes reciprocal tariffs and tariff reductions, still awaits finalization amidst ongoing discussions and recent US tariff changes.
Key Questions Answered
US Trade Representative Jamieson Greer stated that negotiations are in the "short strokes" and nearing the end. However, he cautioned that nothing is imminent because the two sides are still working through a defined set of remaining sticking points.
Announced on February 7, the framework stated that the US would apply an 18% reciprocal tariff rate to originating Indian goods. Meanwhile, India agreed to eliminate or reduce tariffs on all US industrial goods and various agricultural products, alongside addressing non-tariff barriers, rules of origin, and digital trade.
In July, the USTR imposed an additional 10% tariff on Indian imports under Section 301 concerning forced-labor policies, placing India in a lower tariff tier. Despite this, the Indian Commerce Ministry noted that about 45% of its exports to the US remained protected by product exemptions and existing Section 232 measures.
