FX.co ★ - India-U.S. Trade Talks Advance as Interim Deal Nears

Indian and U.S. negotiators have made strides in their trade discussions held in New Delhi this past Tuesday, focusing primarily on enhancing market access, reducing tariffs, and eliminating non-tariff barriers, as reported by Indian officials. The sessions, conducted behind closed doors, involved senior representatives from the U.S. Trade Representative’s office and India’s trade ministry, headed by Rajesh Agrawal. Previously, in February, President Trump and Prime Minister Modi had agreed to solidify a trade agreement by fall 2025, with an ambitious target to expand trade to $500 billion by 2030. An interim agreement is anticipated by the end of June, just before President Trump’s 90-day suspension on reciprocal tariffs—where a 26% tariff is imposed on India—comes to an end. Future phases of the discussions are expected to tackle more intricate issues with the hope of finalizing an initial tranche of agreements by September or October. Meanwhile, Commerce Minister Piyush Goyal, speaking from Switzerland, indicated that India's strategy is to address the less complex issues first. India has turned down U.S. requests for market access concerning wheat, dairy, and corn but has proposed tariff reductions on almonds, pistachios, and walnuts. Additionally, India has sought exemptions from U.S. steel tariffs, a request that was not accommodated by the U.S.