India and US reaffirm commitment to trade deal during talks | Today’s news

New Delhi: India and the US have reaffirmed their commitment to an agreement aimed at strengthening bilateral trade and economic ties after four days of talks in New Delhi between the leaders of the two countries.

“The engagements were marked by a spirit of cooperation and pragmatism, with both sides reaffirming their commitment to a mutually beneficial agreement that will strengthen bilateral trade and economic ties,” the Ministry of Trade and Industry said in a statement on Thursday.

A delegation from the Office of the United States Trade Representative (USTR), led by Chief Negotiator Brendan Lynch, visited India from June 1-4 to advance discussions on the proposed Bilateral Trade Agreement (BTA).

Read also | India and the US are nearing the first phase of a trade pact as talks enter the final phase

According to the Ministry of Commerce, the engagements were marked by a spirit of cooperation and pragmatism, with both sides holding constructive and positive discussions on a wide range of issues, including trade in goods, non-tariff measures, customs and trade facilitation, economic security alignment and other areas of common interest.

The latest round of talks follows a joint statement by India and the US on 7 February 2026 in which the two countries agreed to a framework for an interim agreement on mutual and mutually beneficial trade. The framework also reaffirmed their commitment to negotiating a broader bilateral trade agreement.

“Discussions have helped advance trade pact negotiations, with both sides continuing efforts to deepen economic engagement and expand bilateral trade,” the ministry said.

The talks come as Washington proposed new tariffs on India and 59 other trading partners, including the UK, European Union, China and Japan, over what it described as their failure to ban imports of goods made with forced labour.

Under the proposal, India and most other affected economies could face an additional 12.5% ​​duty, while a smaller group of countries that adopted what the ÚSTR described as stronger measures against the importation of forced labor would face a 10% duty.

ÚSTR said that the actions, policies, and practices of these economies related to the “failure to impose and effectively enforce a ban on imports of goods produced by forced labor” could be actionable under Section 301(b) of the US Trade Act of 1974 if they burden or restrict US trade.

Section 301 authorizes the US government to investigate and respond to foreign trade practices deemed unfair or inconsistent with trade agreements. The proposed measure applies to a wide range of trading partners, including those that already have free trade agreements with the United States, such as Canada, Mexico and Australia.

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ÚSTR also proposed a special mechanism under which a certain volume of apparel and textile imports from certain economies could enter the US at a lower tariff rate.

India is working with the US administration on the latest proposal, the Commerce Department said, adding that products subject to Section 232 tariffs and some other categories were excluded from the proposed Section 301 measures.

The ministry also highlighted the proposed low tariff mechanism for textile and apparel products, stressing that the tariff proposal is still under consultation and has not been finalised.

According to the ÚSTR, interested parties can request to participate in public hearings until June 22 and submit written comments until July 6. Public hearings are scheduled for July 7, after which the agency will review the proposals before making a final decision.

The commerce ministry said India continues to work with the United States to finalize the framework agreement announced on February 2 and in line with the joint statement issued on February 7.

USTR Jamieson Greer called the alleged failure to address imports of goods made with forced labor “unacceptable,” saying it forces American workers to compete on an unequal global playing field.

“We will not continue to tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through the USMCA and commitments in mutual trade agreements. But each of our trading partners must do more to ensure that trade does not perversely support and entrench forced labor globally,” Greer said.

Separately, US Ambassador to India Sergio Gor said on Wednesday that India and the US have resolved 99% of the issues holding up an interim trade deal and could seal the deal within weeks.

“We are very hopeful that the deal will be finalized in the next few weeks, a few weeks. But it won’t be years. We are very close to finalizing it,” Gor said at Citi’s India Conference 2026 in Mumbai.

Read also | Mint Explainer | Why did the US propose new tariffs on India?

Responding to questions on the proposed tariff measure, Gor said the measures were not specifically targeted at India and were applied globally. He added that the emerging trade arrangement could put India in a more advantageous position than many regional competitors.

For India, the proposed tariffs could have significant implications for labour-intensive export industries. Industries such as textiles and clothing, carpets, leather goods, brass goods and other handicrafts could face an additional tariff burden of 10% to 12.5% ​​if the measures are finalized, increasing the cost of accessing the US market and potentially affecting competitiveness. However, the final contours of the customs regime will depend on the outcome of the ongoing consultation process and parallel trade negotiations between Delhi and Washington.

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