The United States and India have begun bilateral trade negotiations in New Delhi, aiming to avert tariff deadlines set by U.S. President Donald Trump. The negotiations commenced on Tuesday and are expected to continue through Saturday. The U.S. delegation is being led by Brendan Lynch, Assistant United States Trade Representative for South and Central Asia.
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03-31, 2025The U.S. Embassy issued a statement saying, "This visit reflects the United States’ continued commitment to advancing a productive and balanced trade relationship with India." The negotiations are taking place ahead of President Trump's April 2nd deadline, by which the U.S. may impose "reciprocal" tariffs on countries worldwide, including India. This underscores the urgency of finding common ground during these talks.
Indian Commerce Undersecretary Jitin Prasada told parliament on Tuesday that the two countries plan to negotiate a "multi-sectoral bilateral trade agreement," focusing on increased market access and "reducing tariff and non-tariff barriers." The two countries have been engaged in intense negotiations since Trump took office. This follows Indian Prime Minister Narendra Modi's visit to Washington in February, and subsequently, Indian Trade Minister Piyush Goyal's unscheduled visit to the U.S. in March for talks.
The U.S. had been India's largest trading partner, with bilateral trade reaching $190 billion. Trump and Modi had set a goal to more than double trade to $500 billion. Both sides also pledged to negotiate the first phase of a trade agreement by the fall of 2025. The Trump administration has repeatedly accused India in the past of being the "tariff king" and a "grave abuser of trade relationships."
India recently lowered tariffs on bourbon whiskey, motorcycles, and some other U.S. products, but the trade balance still heavily favors India, with New Delhi enjoying a $45 billion trade surplus. India's average tariff rate of about 12% is also significantly higher than the U.S.'s 2%. Reuters reported that, to avoid reciprocal action from Trump, India may be considering cutting tariffs on over half of U.S. imports, worth $23 billion, in the first phase of a trade deal.
Trump had previously stated that he wants to impose reciprocal tariffs on countries, meaning the U.S. would charge the exact same fees that other countries charge the U.S. But on Monday, he suggested the White House might go "better than that." He said, "We may charge less than they charge us, because they charge us too much, and I don’t think they can afford it." He also acknowledged that some countries may be exempt from these measures. This flexibility could provide an opening for a mutually beneficial agreement with India.
