U.S., India Target Fall 2025 Trade Agreement

The United States and India are now aiming to finalize a bilateral trade agreement by fall 2025, with the possibility of an interim deal during a current 90-day pause in reciprocal tariffs. President Donald Trump and Treasury Secretary Scott Bessent have cited smoother progress with India due to its clear tariff structures, compared to talks with other countries. The U.S. has already imposed new tariffs, including a 10% baseline rate and higher rates for certain imports, while pausing some measures to support negotiations. These tariffs are intended to protect domestic industries but have raised concerns in sectors like artificial intelligence and defense over rising costs and supply chain disruptions. Negotiations with other key partners, such as South Korea and Japan, are ongoing, though no agreements have been finalized yet. Pressure remains high as elevated tariffs are set to take effect after July 8 if no deals are reached.