India is intensifying its push for a bilateral trade agreement (BTA) with the United States, just as former US President Donald Trump signals the announcement of another major trade deal upon his return from the Middle East. The high-stakes negotiations come at a critical time, as both nations seek to resolve lingering tariff disputes and strengthen economic ties.
According to PTI, Commerce and Industry Minister Piyush Goyal will lead the Indian delegation in a four-day series of trade talks in the US from May 17 to 20. He is scheduled to meet key officials, including US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick, in hopes of ironing out the contours of a long-delayed deal.
Trump’s Trade Threat and Ceasefire Remark
Adding to the intensity of the talks is Trump’s recent claim that he played a role in the surprise India-Pakistan ceasefire, reportedly threatening to cut trade ties with both countries if tensions didn’t ease.
“I said, let’s stop it. If you stop it, we’re doing trade. If you don’t stop it, we’re not going to do any trade,” Trump told reporters at the White House.
He also stated that trade negotiations are ongoing with India, and that Washington could soon begin similar talks with Pakistan. However, Indian officials have pushed back strongly, saying no such trade threat was discussed in official channels, particularly in the wake of Operation Sindoor.
What’s on the Table in India-US Trade Deal?
The upcoming talks aim to capitalize on a 90-day tariff truce to deliver early wins before a formal Phase 1 agreement is expected in October. Under the terms of the truce, the US dropped 26% tariffs on Indian imports until July 9, while a base tariff of 10% is still in force. India, as a reaction, has put forth a proposal before the World Trade Organisation (WTO) requesting retaliatory tariffs against the US for continued Indian steel and aluminium duties.
India is expected to push for duty reductions on a range of sectors including:
- Textiles
- Gems and jewellery
- Leather goods
- Garments
- Plastics and chemicals
- Shrimp and oilseeds
- Grapes and bananas
- Meanwhile, the US is lobbying for lower tariffs on:
- Automobiles (including EVs)
- Wines
- Petrochemicals
- Dairy products
- Farm commodities like apples and tree nuts
US Continues to be India’s Top Trading Partner
The US continues to be India’s largest trading partner for the fourth year in a row, with two-way trade reaching $131.84 billion in FY 2024–25. Importantly, India has a trade surplus, sending more goods to the US than it imports — something that has accelerated since 2020 and continues to worry American policymakers.
As each side hopes to bridge gaps and intensify cooperation, this round of negotiations has the potential to be transformative in re-defining the trade equation between the world’s two largest democracies.
