India-US Trade Negotiations Underway Amid Tariff Disputes; Pact Expected by Fall 2025
March 8, 2025: India and the United States are actively negotiating a Bilateral Trade Agreement (BTA) to resolve tariff disputes and enhance economic cooperation, sources confirmed. This development comes after US President Donald Trump accused India of imposing “massive, restrictive tariffs”, making it difficult for American companies to conduct business in the country.
Also Read: “Can’t Sell Anything In India”: Trump Again Slams India Over “Massive Tariffs”
During remarks from the Oval Office on Friday, Trump claimed that India, Canada, Mexico, and the European Union have taken undue advantage of the US in trade, asserting that India has now agreed to “cut tariffs way down.”
“India charges us massive tariffs. Massive! You can’t even sell anything into India—it’s almost restrictive,” Trump stated.
“But they’ve agreed to cut their tariffs way down because somebody finally exposed what they’ve done.”
In response, Indian officials emphasized that New Delhi has significantly reduced average applied tariffs for key trade partners, including Australia, UAE, Switzerland, and Norway, through recently concluded bilateral agreements.
Sources revealed that India and the US agreed in February 2025 to negotiate a multi-sector trade pact aimed at increasing market access, reducing tariff barriers, and strengthening supply chain integration.
The first tranche of the agreement is expected by Fall 2025, following discussions between Prime Minister Narendra Modi and President Trump. Both nations have designated senior representatives to lead negotiations.
As part of these negotiations, Commerce Minister Piyush Goyal led an Indian delegation to Washington DC from March 3-6, meeting with US Commerce Secretary Howard Lutnick, the US Trade Representative, and other key officials.
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Sources confirmed that the discussions focused on tariff adjustments and trade restrictions highlighted during PM Modi’s previous visit to Washington DC.
“It is natural that both countries have their interests and sensitivities. These are legitimate matters for discussion, and negotiations are ongoing,” the sources added.
During Trump’s first administration (2017-2021), efforts to establish a limited trade deal did not materialize. However, with negotiations gaining momentum, both sides are optimistic about reaching a mutually beneficial agreement.
While specific details remain under discussion, officials urge patience, stating that the BTA will be shaped to reflect the interests of both nations. With the next round of negotiations scheduled later this year, business leaders and policymakers are closely watching how the India-US trade relationship evolves.
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