Reciprocal Tariffs Pause: India, US Race Against Time For Trade Deal; Trump Officials To Visit New Delhi In June

Union Minister of Commerce and Industry Piyush Goyal with Howard Lutnick, US Secretary of Commerce (Photo- X@PiyushGoyal)

New Delhi: India's trade negotiations with the US are entering the final leg, with Commerce Minister Piyush Goyal set to meet members of export promotion councils (EPCs) on Tuesday. The US trade team is likely to arrive in India next month for talks, as New Delhi aims to wrap up negotiations by July 9, the end of the 90-day reciprocal tariffs pause.

According to a report by The Indian Express, the consultation meeting with EPCs is scheduled after Goyal led the Indian delegation to Washington last week, where he met US Commerce Secretary Howard Lutnick to advance trade talks.

India is seeking the elimination of the 26% reciprocal tariff and duty-free entry for labor-intensive export items such as textiles and footwear in the US. However, US President Donald Trump has continued his tariff rhetoric targeting India, stating that Apple would have to pay a 25% tariff if it sold iPhones in the US that are built in India or elsewhere. The US is also seeking market access in India for items including agricultural products.

The Office of the United States Trade Representative (USTR) has criticized various Indian trade barriers, including regulations requiring that "dairy products intended for food must be derived from animals that have not consumed feed containing blood meal". The USTR report also flagged India's regulations on the import of milk, pork, and fish products, stating that they require genetically modified (GM)-free certificates "without providing a scientific or risk-based justification".

The US remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion. India had a trade surplus of $41.18 billion in goods in 2024-25, up from $35.32 billion in 2023-24. Both countries aim to conclude an interim trade deal by July 9, covering a limited range of goods and services. The interim deal is expected to pave the way for a broader trade agreement, to double bilateral trade to $500 billion by 2030.

External Affairs Minister S. Jaishankar and Commerce Minister Piyush Goyal have stressed the urgency of clinching a bilateral trade deal that safeguards India's interests. The next round of talks with the US will be held in New Delhi, with a team of American officials expected to visit in the coming weeks.