India, US Review Progress on Trade Agreement Discussions Ahead of Tariff Deadline

PTI, June 24, 2026, New Delhi : India and the United States reviewed the progress on an interim bilateral trade agreement during the two-day ministerial meeting, discussing issues, including market access, digital trade and non-tariff barriers, but gave no indication that all differences were resolved ahead of a key tariff deadline next month.

Commerce and Industry Minister Piyush Goyal and visiting US Trade Representative Jamieson Greer held discussions on the first phase of a proposed bilateral trade agreement (BTA), which both sides have been negotiating since reaching a framework understanding earlier this year.

In a statement at the conclusion of talks on Wednesday, the Commerce Ministry said the two ministers conducted a "comprehensive review" of key elements of the proposed pact, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers and cooperation in strategic sectors.

The ministry said both countries discussed pathways to conclude an interim agreement and reaffirmed their commitment to a deal that is "balanced and commercially meaningful".

Greer's June 22-24 visit came at a time when New Delhi and Washington race to finalise an interim arrangement before the expiration of a temporary 10 per cent US tariff regime on July 24, a deadline that has added urgency to negotiations.

While the statement said "substantial" progress has been made, the two sides did not say if outstanding issues had been resolved.

"Discussions focused on pathways to conclude an interim agreement as an important milestone toward a comprehensive BTA," the ministry said, adding that the two ministers reaffirmed their commitment to a trade agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers in both countries.

"Recognising the growing significance of the India-US economic partnership amid evolving global trade dynamics, both sides reiterated their shared goal of expanding bilateral trade, fostering innovation, and building resilient, trusted supply chains," it added.

The ministerial-level meeting follows chief negotiator-level discussions held in New Delhi earlier this month (June 2-4).

Securing preferential tariff treatment in the pact has become a central objective for New Delhi after changes in the US tariff landscape eroded an advantage India had expected to enjoy over regional competitors such as Vietnam and other ASEAN economies.

Under the February 7 framework, the US had agreed to reduce tariffs on Indian goods to 18 per cent from 25 per cent, lower than duties facing several competing exporting nations.

However, the subsequent US Supreme Court ruling striking down President Donald Trump's sweeping tariffs and Washington's move to impose a temporary 10 per cent tariff on imports from all countries prompted the two countries to revisit key elements of the proposed framework.

According to one of the clauses of that framework, "In the event of any changes to the agreed upon tariffs of either country, the United States and India agree that the other country may modify its commitments."

India and the US formally launched BTA negotiations on February 13, 2025.

Meanwhile, to retain bargaining leverage, the US Trade Representative launched two Section 301 investigations on March 11 and 12, covering about 60 economies.

One focused on alleged excess industrial capacity, while the other examined forced-labour concerns in global supply chains. India was included in both investigations.

After expiry of the temporary tariff, the US has only this mechanism (Section 301 probes) to impose tariffs of any magnitude on its trading partners, including India.