A delegation of US officials is expected to visit India in the coming weeks for the next round of discussions on a proposed interim trade agreement between the two countries, according to a PTI report citing sources familiar with the matter.
The visit holds particular significance as both sides aim to finalize an interim pact before July 9. India is pushing for a full exemption from the 26 per cent reciprocal tariff recently imposed on its goods.
“The US team is expected in India for trade talks. Negotiations are moving at a faster pace,” one of the sources said in the report.
India’s lead negotiator, Rajesh Agrawal, Special Secretary in the Department of Commerce, recently concluded a four-day trip to Washington, where he met his US counterpart to advance talks on the proposed agreement.
Commerce and Industry Minister Piyush Goyal also traveled to Washington last week to give momentum to the negotiations. During his visit, he held two meetings with US Commerce Secretary Howard Lutnick.
Also Read: Gold Rate Today (May 27): Check Out Gold Prices In Delhi, Mumbai, Bengaluru, Ahmedabad, More Cities
Reciprocal Tariff
On April 2, the US imposed a 26 per cent reciprocal tariff on Indian goods but suspended its enforcement for 90 days, until July 9. However, Indian exports to the US continue to face a 10 per cent baseline tariff.
Under current US trade policy, the administration needs Congressional approval to reduce tariffs below Most Favoured Nation (MFN) levels. However, it retains the authority to lift reciprocal tariffs on certain countries, including India.
Both countries have set a target to finalise the first phase of a broader bilateral trade pact by fall 2025 (September–October). There is growing optimism that an interim agreement could be reached ahead of this deadline.
The United States remained India’s top trading partner for the fourth consecutive year in 2024–25, with total bilateral trade reaching $131.84 billion. The US accounted for approximately 18 per cent of India’s goods exports, 6.22 per cent of imports, and 10.73 per cent of total merchandise trade.
India recorded a trade surplus of $41.18 billion with the US in 2024–25, up from $35.32 billion in 2023–24, $27.7 billion in 2022–23, $32.85 billion in 2021–22, and $22.73 billion in 2020–21. The growing trade imbalance has drawn concern from the US.
