NEW DELHI: India and the United States are set to resume negotiations on their proposed interim trade agreement, with an Indian delegation expected to visit Washington later this month.
The development signals a renewed push to stabilise bilateral trade ties after legal and policy disruptions stalled progress on a framework deal earlier this year.
US Ambassador to India Sergio Gor confirmed the upcoming visit following discussions with US Trade Representative Jamieson Greer.
“….The United States and India have previously agreed to a trade deal, and we look forward to welcoming an Indian delegation to Washington later this month,” Gor said.
While dates are yet to be finalised, officials here said that i the focus will be on translating the earlier understanding into a “workable, feasible and mutually beneficial” interim agreement.
The interim trade deal framework, announced on February 7, had outlined mutual tariff adjustments aimed at easing trade frictions. For India, a key gain was the rollback of an additional 25% tariff imposed by the US over its purchase of Russian crude oil.
The proposed arrangement had also included a reduction in reciprocal US tariffs on Indian goods to 18% from 25%, offering a measure of relief to exporters. However, the trajectory of the agreement was disrupted by a ruling of the US Supreme Court on February 20, which invalidated country-specific tariffs.
This forced a reset in US trade policy, complicating the path to finalising the bilateral deal. In response, Washington imposed a uniform 10% additional duty on imports under Section 122 of the Trade Act, a temporary measure aimed at addressing balance of payments concerns. The provision allows such duties for up to 150 days, with a cap of 15%.
Further adding to the complexity, the US has initiated investigations under Section 301 of the Trade Act into trade practices of key partners, including India and the European Union, focusing on policies linked to excess manufacturing capacity and their impact on American industry.
Despite these challenges, diplomatic engagement remains active. India’s Foreign Secretary Vikram Misri held talks in Washington with senior US officials, including Jeffrey Kessler and William Kimmitt, which focused on expanding trade and investment, particularly in strategic and emerging technologies, as well as aligning approaches on export controls.
As negotiations resume, India is expected to push for retention of tariff advantages over competing economies, with officials saying that a balanced and durable interim agreement.