India, US Near First Phase Trade Agreement With Tariff Reductions

The United States and India are nearing an initial agreement in their ongoing trade negotiations, with an announcement expected within the next seven to ten days. This first tranche of the Bilateral Trade Agreement aims to reduce tariffs, including exemptions for certain Indian products from the U.S.'s 26% reciprocal tariffs and a lower 10% tariff on other imports, while addressing sectors like labor-intensive exports and agriculture. Indian Commerce Minister Piyush Goyal and U.S. Commerce Secretary Howard Lutnick have emphasized their commitment to a mutually beneficial deal, which supports ambitious targets to double bilateral trade to $500 billion by 2030. While disputes such as India's WTO challenge to U.S. steel and aluminum tariffs exist, both sides remain optimistic that these issues will not derail broader agreements. The deal is expected to be implemented in phases, covering tariffs, investment, non-tariff barriers, and quality control, reflecting a strategic effort to deepen economic ties and enhance trade opportunities. These developments follow recent high-level discussions between Prime Minister Narendra Modi and former President Donald Trump, underscoring a shared goal of significantly expanding trade relations.