A US trade delegation is expected to visit India for another round of talks, although the dates for the visit have not yet been set.
According to sources quoted by ANI, the discussions are likely to be related to the ongoing Section 301 investigations of the Office of the United States Trade Representative (USTR), adding that a trade deal between India and the US is unlikely to happen until the USTR completes its investigation.
Talks between India and the United States on a proposed bilateral trade agreement (BTA) have reportedly become complicated following a US Supreme Court ruling in February that found mutual tariffs illegal. Following the decision, the ÚSTR Office initiated an investigation under Section 301 of India’s Commerce Act, 1974, according to The New Indian Express.
The probes focus on what Washington reportedly describes as “structural overcapacity” in labor-intensive industries including steel, textiles and solar modules. The US has also alleged that Indian manufacturers benefit from overcapacity and the use of forced labour. India strongly disputed the claims, saying the US had not identified any specific domestic policies or practices to support such allegations, the report added.
India-US trade talks took place in Washington last month
India and the United States made constructive progress during three days of trade talks in Washington, DC in April this year, with both sides agreeing to continue discussions and maintain momentum, the Indian government said on Friday, according to PTI.
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A delegation of about a dozen Indian officials was in Washington from April 20 to April 22 to work with their American counterparts to finalize the details of the first phase of the proposed BTA.
According to a statement from India’s Ministry of Commerce and Industry, the talks covered a wide range of issues, including market access, non-tariff measures, technical barriers to trade, tariffs and trade facilitation, investment promotion, economic security cooperation and digital trade.
“The meetings were conducted in a constructive and positive spirit, with meaningful and insightful discussions enabling progress on key issues. Both sides agreed to remain engaged in maintaining this momentum as they move forward,” it said.
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US Trade Representative Jamieson Greer described India as a “tough nut to crack” in trade negotiations.
India and US Framework for Interim Trade Agreement (ITA)
After the US Supreme Court struck down President Donald Trump’s sweeping reciprocating tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977, the Trump administration imposed a temporary 10% tariff on imports from all countries for a 150-day period starting on February 24.
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Before the court ruling, Washington and New Delhi had drawn up a framework that would see US tariffs on Indian goods cut from 50% to 18%. The arrangement also called for the removal of the 25% duty imposed on Indian exports in connection with Indian purchases of Russian oil and the reduction of the remaining duties to 18%.
In return, India has proposed eliminating or reducing tariffs on all US manufactured goods and a wide range of agricultural and food products, including distillers’ dried grains (DDG), red sorghum used in animal feed, nuts, fresh and processed fruits, soybean oil, wine and spirits, among others.
New Delhi also said it was ready to buy $500 billion worth of US products over the next five years, including energy supplies, aircraft and aircraft parts, precious metals, technology products and coking coal.
Meanwhile, China has overtaken the US to become India’s largest trading partner by 2025-26. The US held this position for four consecutive years until 2024-25.
India’s exports to the United States rose slightly by 0.92% to $87.3 billion in the last fiscal year, while imports from the US rose 15.95% to $52.9 billion. As a result, India’s trade surplus with the United States has narrowed to $34.4 billion in 2025-26, down from $40.89 billion in the previous fiscal year.
