Trade negotiations between India and the United States appear to be entering their final phase, with US President Donald Trump indicating that an agreement could be reached soon even as Washington pursues a new round of tariff measures against several trading partners, including India.
Speaking at the White House on Thursday, Trump signalled confidence that the two countries would overcome remaining trade differences and finalise a deal. “For years, India took advantage of the United States… They charged us tremendous tariffs and paid nothing… Now it is the exact reverse, and we are making a lot of money with India. But we will get to a deal because I like your Prime Minister (Narendra Modi) a lot; he is a good friend of mine, and we get along well. We have a good relationship,” Trump said.
He suggested that the positive rapport between the two leaders could help advance negotiations.
Trump's comments come as trade officials from both countries conclude another round of discussions in New Delhi aimed at improving market access and strengthening economic ties.
The optimism surrounding the negotiations contrasts with the latest trade measures announced by the US. Washington has proposed additional tariffs ranging from 10 percent to 22.5 percent on imports from dozens of economies following investigations into the use of forced labour in supply chains.
The Office of the United States Trade Representative (USTR) has identified 54 economies, including India, as countries that have not sufficiently restricted the import of goods allegedly produced through forced labour. The list also includes major trading partners such as China, Japan, South Korea, the United Kingdom, Australia, Switzerland and the United Arab Emirates.
The proposed measures fall under Section 301 of the US Trade Act of 1974, which authorises action against trade practices deemed harmful to American commerce. A separate mechanism has also been proposed for textile and apparel imports, allowing limited quantities from selected countries to enter the US at lower tariff rates.
Despite the tariff-related uncertainty, both sides continue to push ahead with negotiations under a framework agreed in February for an interim trade agreement.
The framework reaffirmed the commitment of both governments to conclude a broader India-US Bilateral Trade Agreement on reciprocal and mutually beneficial terms.
A US delegation led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, held discussions in India from June 1 to June 4. The Indian side was led by Darpan Jain, Additional Secretary in the Department of Commerce.
According to the Union Commerce Ministry, the discussions covered trade in goods, non-tariff barriers, customs facilitation and economic security cooperation, with both sides describing the talks as constructive.
Senior US officials have also expressed confidence about the progress of negotiations. US Ambassador Sergio Gor recently described the India-US relationship as one of the most important strategic partnerships globally, while US Secretary of State Marco Rubio indicated that both governments are keen to conclude the agreement and that a deal could be finalised within weeks.
The latest discussions mark the second in-person negotiating round since the interim framework was agreed in February. The first round took place in Washington in April.
Under the February framework, the US had agreed to reduce additional tariffs on Indian goods, while India signalled greater market access for American industrial products and plans to increase purchases of US goods over the next five years.
However, the path towards a final agreement became more complicated after the US Supreme Court struck down country-specific reciprocal tariffs. The Trump administration subsequently imposed a temporary 10 percent tariff on imports from all trading partners under Section 122 of the Trade Act.
Those tariffs are due to expire on July 24. At the same time, the launch of fresh Section 301 investigations could create new challenges for negotiators and influence the final shape of any India-US trade agreement.
