NEW DELHI: Union Commerce and Industry Minister Shri Piyush Goyal said that, the bilateral trade agreement between India and the United States will be finalised in light of changing circumstances since the countries announced a framework for an interim pact in February, evolving tariff dynamics and legal nuances have kept negotiators at work on the fine print.
Speaking at an industry chamber event in New Delhi, Goyal told members of PHDCCI that whilst a framework had been reached, evolving conditions would shape the final agreement.
The February framework reduced the US reciprocal tariff on Indian goods from 50 per cent to 18 per cent and removed a separate 25 per cent surcharge tied to India’s purchases of Russian oil.
India, in turn, committed to eliminating or reducing tariffs on US industrial and agricultural goods. However, the broader bilateral trade agreement remains unsigned, with both sides still working to finalise terms.
The minister did not specify which changed circumstances he was referring to, though shifting US tariff policy has continued to complicate negotiations.
Finance Minister Smt Nirmala Sitharaman stated earlier this month that negotiations had reached a “plateau” beyond which further concessions would be “very, very difficult”. She criticised the weaponisation of tariffs during talks, suggesting such tactics had moved beyond standard negotiation.
Goyal recently met US Trade Representative Jamieson Greer during the G20 trade ministers’ meeting in Milwaukee, where the two discussed issues related to the trade pact.
India seeks lower tariffs for its goods than competitors receive in American markets, whilst the US aims to reduce its trade deficit with India, which stood at $58.4 billion in goods in 2025.
The minister also revealed that trade talks with Canada were progressing rapidly, and negotiations with Mexico would launch next week.
