India and the United States have commenced bilateral trade negotiations in Delhi, which will continue until Saturday.
A U.S. delegation, led by Assistant Trade Representative for South and Central Asia Brendan Lynch, arrived in the Indian capital on Tuesday for discussions aimed at strengthening trade relations.
“This visit reflects the United States’ continued commitment to advancing a productive and balanced trade relationship with India,” the U.S. Embassy stated.
The talks come ahead of U.S. President Donald Trump’s April 2 deadline to impose “reciprocal” tariffs on several countries, including India. Trump has long advocated for tit-for-tat tariffs, arguing that the U.S. should impose the same duties on foreign goods that its trading partners levy on American exports.
India’s junior commerce minister Jitin Prasada informed parliament on Tuesday that both nations were negotiating a “multi-sector bilateral trade agreement” to expand market access and address “tariff and non-tariff barriers.”
Trade discussions between the two countries have been ongoing since Trump assumed office. In March, Trade Minister Piyush Goyal made an unscheduled visit to the U.S. following Indian Prime Minister Narendra Modi’s February trip to Washington.
Until recently, the U.S. was India’s largest trading partner, with bilateral trade reaching $190 billion. Trump and Modi had set an ambitious target to more than double this figure to $500 billion (£400 billion). The two nations have also committed to finalizing the first phase of a trade deal by autumn 2025.
Despite these commitments, past tensions have characterized U.S.-India trade relations. The Trump administration has previously criticized India as a “tariff king” and a “big abuser” of trade agreements.
In response to U.S. concerns, India recently lowered tariffs on select American goods, including Bourbon whiskey and motorcycles. However, trade imbalances persist, with India maintaining a $45 billion surplus. India’s average tariff rate of approximately 12% remains significantly higher than the U.S. rate of 2%.
While officials have not disclosed details of the ongoing talks, a Reuters report suggests that India might reduce tariffs on over half of U.S. imports worth $23 billion in the first phase of a trade deal. This move could be an attempt to prevent retaliatory action from Washington.
Although Trump has pushed for strict tariff reciprocity, he hinted on Monday that his administration might take a more lenient approach.
“We may take less than what they’re charging, because they’ve charged us so much, I don’t think they could take it,” Trump said, suggesting that some countries might receive exemptions from the new measures.
As negotiations progress, both nations aim to strike a deal that balances market access with their respective economic priorities.