India-US open high-level trade talks in New Delhi to recalibrate proposed bilateral trade agreement

India and the United States opened high-level trade talks to salvage and recalibrate a proposed bilateral trade agreement after changes in US tariff policy disrupted a framework negotiated earlier this year. Commerce and Industry Minister Piyush Goyal met United States Trade Representative Jamieson Greer and US Ambassador to India Sergio Gor in New Delhi yesterday. 

Both sides are aiming to conclude an interim trade pact before 24th July, when Washington’s temporary 10% tariff on imports from trading partners is set to expire. On February 20, the US Supreme Court struck down sweeping tariffs. This led the US administration to impose a temporary 10% tariff under Section 122 of the Trade Act on all countries for 150 days starting February 24, which is due to expire on July 24. Following a de-escalation in bilateral trade tensions, the U.S. reduced the reciprocal tariff on most Indian goods to 18% and removed a previous 25% penalty tariff. India had also proposed reducing or eliminating tariffs on a range of US industrial and agricultural goods, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fruits, soybean oil, wine and spirits, among others.

Earlier, Piyush Goyal said in a social media post that he was looking forward to productive discussions on the India-US bilateral trade agreement. Meanwhile, Sergio Gor also shared a message on social media. He said India and the US are moving decisively towards finalising a strong bilateral trade agreement that will unlock new economic opportunities for both countries and significantly deepen the US-India economic partnership.