India-US Trade Deal: Will Tariff Maze Finally Break? ‘Secret’ Team Poised To Deliver Big News | World News

New Delhi: The United States has trapped the world in a complex web of tariffs. The only effective way for India to overcome this maze is a bilateral trade agreement with Washington. Negotiations regarding such an agreement have gained momentum recently. A high-level Indian delegation is traveling to the United States this week to advance talks that began in February. “The Indian team will visit this week,” said an official close to the development.

This visit marks the next step in a series of discussions aimed at increasing trade and removing tariff barriers between the two countries.

Prime Minister Narendra Modi spoke to US President Donald Trump last Thursday. Officials said the talks were making good progress. The deal has been discussed since February. Leaders then instructed their teams to work on an agreement and complete the first phase of the agreement by fall 2025.

There have been five rounds of negotiations so far. Officials with knowledge of the progress claimed that talks were moving “in the right direction” and that “the breakthrough was steady.” The big question now is when the two sides will sign the agreement.

US Looks to India for Support

Meanwhile, tensions between the US and China have escalated, and Washington is seeking New Delhi’s support.

US Treasury Secretary Scott Baesant has strongly opposed China’s new restrictions on the export of rare earth materials. He said the United States and its allies would not allow Beijing to “arbitrarily control” exports.

Calling it a “direct attack on global supply chains”, he described the situation as “China against the rest of the world”. The US plans to coordinate with its allies, including India and European partners.

Last month, Commerce and Industry Minister Piyush Goyal visited New York. He led an official delegation to hold trade consultations with US officials. Following the talks, both sides agreed to continue negotiations for a mutually beneficial trade agreement.

During the visit, Goyal met US Trade Representative (USTR) James Greer and US Ambassador-designate Sergio Gor to India and discussed many aspects of the proposed trade framework.

Trade Barriers May Ease

The talks took place after the US imposed a retaliatory 25 percent customs duty and an additional 25 percent penalty on Indian goods. This step comes in response to India’s ongoing purchases of crude oil from Russia. Total customs duty on India’s exports currently stands at 50%. This highlights the importance of a bilateral trade agreement that could reduce these trade barriers.

The agreement aims to more than double trade between India and the US to $500 billion by 2030. Current trade between the two countries stands at 191 billion dollars. The US remains India’s largest trading partner for the fourth consecutive year in 2024-25. Total trade is estimated at $131.84 billion, including $86.5 billion in Indian exports.

Currently, the US accounts for about 18% of India’s total merchandise exports, 6.22% of its imports, and 10.73% of its overall trade. The proposed agreement is vital for India’s foreign trade strategy. It will facilitate trade between the two countries and benefit both. Growth in trade is also expected to create employment.