Goyal, Greer to review interim trade deal as India, US race against tariff deadline | Today’s news
India and the United States reviewed progress on the Interim Bilateral Trade Agreement during a two-day ministerial meeting that ended on June 24 in New Delhi.
The two sides discussed elements of the trade agreement, including better market access, digital trade, supply chain resilience, the reduction of non-tariff barriers and expanded cooperation in strategic sectors, the government said in a statement, without any indication that any differences had been resolved ahead of a key rate-setting deadline next month.
Quick answers to key questions
•5 QUESTIONS
Discussions covered, among others, enhanced market access, digital trade, supply chain resilience and reduction of non-tariff barriers, among other key elements of the interim trade agreement.
The urgency stems from the looming expiration of a temporary 10 percent U.S. tariff on July 24, which has increased pressure to conclude trade talks.
Changes in US tariff policy have prompted both nations to reassess key elements of their trade framework, which was originally intended to reduce tariffs on Indian goods but has become less favorable due to legal rulings.
Both India and the US are committed to a trade agreement that is balanced and makes commercial sense and aims to deliver tangible benefits to businesses, farmers, workers and consumers in both countries.
Yes, Indian exporters should be concerned as high tariffs, which were earlier supposed to be reduced under the trade deal, pose challenges in keeping them competitive in the US market.
Read also | Piyush Goyal meets Jamieson Greer: What’s on the agenda?
Trade and Industry Minister Piyush Goyal and visiting US Trade Representative Jamieson Greer discussed the first phase of a proposed bilateral trade agreement (BTA), which the two sides have been negotiating since reaching a framework agreement earlier this year.
“The two ministers conducted a ‘comprehensive review’ of key elements of the proposed pact, including enhanced market access, digital trade, supply chain resilience, reduction of non-tariff barriers and cooperation in strategic sectors,” the trade ministry said in a statement at the end of Wednesday’s meeting.
The ministry said the two countries discussed ways to reach an interim agreement and reaffirmed their commitment to a deal that is “balanced and commercially meaningful.”
Greer’s June 22-24 visit comes as New Delhi and Washington race to finalize an interim arrangement before the temporary 10% US tariff regime expires on July 24, a deadline that has increased the urgency of negotiations.
While the statement said “substantial” progress had been made, the two sides did not say whether outstanding issues had been resolved.
“Discussions focused on ways to conclude an interim agreement as an important milestone towards a comprehensive BTA,” the ministry said, adding that the two ministers reaffirmed their commitment to a trade agreement that is balanced, commercially meaningful and brings tangible benefits to businesses, farmers, workers and consumers in both countries.
Read also | ‘Very, very close’ to historic trade deal with India, senior US official
“Recognizing the growing importance of the Indo-US economic partnership amid the evolving dynamics of global trade, both sides reiterated their shared goal of expanding bilateral trade, fostering innovation and building resilient and trustworthy supply chains,” it added.
‘Very close’ to historic bilateral trade deal: US official
The United States and India are “very, very close” to striking a historic bilateral trade deal that will open India’s $1.4 billion market to American goods on mutually beneficial terms. a senior US official was quoted as saying This was reported by news agency PTI.
Event resolution on Capitol Hill hosted by the Foundation for India and Indian Diaspora Studies (FIIDS) on Tuesday, US Deputy Assistant Secretary of State Bethany Poulos Morrison said the Prime Minister Narendra Modi and US President Donald Trump have pushed for a “results-oriented” relationship.
“We don’t measure (the relationship) by meetings. We measure it by results,” she said, referring to the trade talks launched after the Trump-Modi deal earlier this year.
What did Piyush Goyal say?
Earlier in the day, Goyal said in a social media post that the two sides reviewed the progress of ongoing trade talks between India and the US.
“I appreciate Ambassador Greer’s leadership and the persistent efforts of both teams in advancing our discussions in a constructive and forward-thinking manner,” Goyal said in a post on X.
ÚSTR said that India has a long history of agriculture and manufacturing and that they are moving forward in technology.
“They want to move forward in AI. They want to collaborate and work with the United States on the technology of the future and the trade of the future. And those are some of the exciting opportunities that we’re going to have between the United States and India to take advantage of that,” he said.
Greer added that President Donald Trump and Prime Minister Narendra Modi have a “wonderful” relationship that they have cultivated over many years.
“Just last week they met at the G7 in Evian, France, and I was there, and they agreed that they are taking the relationship to the next level. That includes the trade agreement that we are working on, but it includes all aspects of the relationship and we expect the relationship to continue to develop and take it to a higher and higher level every week,” he added.
The two countries aim to salvage and recalibrate the proposed agreement after changes in US customs policy disrupted a framework agreement finalized earlier this year.
Greer’s visit followed the first meeting between Prime Minister Narendra Modi and US President Donald Trump in more than a year on the sidelines of the G7 summit in France on June 17, injecting fresh impetus into trade talks that both sides see as crucial to strengthening economic ties.
The ministerial-level meeting follows discussions at the chief negotiator level held in New Delhi earlier this month (June 2-4).
India and the US formally opened negotiations on the BTA on February 13, 2025. Meanwhile, to maintain negotiating leverage, the US Trade Representative launched two Section 301 investigations on March 11 and 12, covering about 60 economies.
One focused on alleged industrial overcapacity, while the other explored concerns about forced labor in global supply chains. India was included in both investigations.
The US is India’s second largest trading partner at 25-26
After the temporary tariff expires, the US has only this mechanism (a Section 301 review) to impose tariffs of any magnitude on its trading partners, including India.
In February this year, the two sides announced the outlines of the first phase. It was based on the 50 percent tariffs imposed by the US on Indian goods.
However, on February 20, the US Supreme Court overturned these sweeping tariffs. It forced the Trump administration to impose 10 percent tariffs under Section 122 of the trade law on all countries for 150 days starting on February 24. It expires on July 24 of this year.
The US was India’s second largest trading partner in 2025-26.
We don’t measure (relationship) by meeting. We measure it by results.
India’s outbound shipments to the US rose marginally by 0.92 percent to $87.3 billion during the last fiscal year despite high tariffs, while imports rose 15.95 percent to $52.9 billion. The trade surplus has narrowed to $34.4 billion in 2025–26 from $40.89 billion in 2024–25.
