March 24, 2025
The upcoming talks are just days before April 2, when the US will impose reciprocal tariffs on key trading partners, including India
India has shared a non-paper—an informal discussion document—outlining its views and proposals, with the US expected to respond this week
While the contents remain confidential, New Delhi is reportedly open to lowering tariffs on various products, especially in labour-intensive sectors like textiles and leather
Washington continues to push for tariff cuts on sectors such as automobiles, alcohol, and agriculture, with alcohol duties currently exceeding 100%
To finalise the shape of the proposed bilateral trade agreement (BTA), a team of United States (US) officials, headed by Assistant Trade Representative Brendan Lynch, will arrive in New Delhi next week to hold discussions with their Indian counterparts.
Both governments are aiming to finalise the first tranche of a “mutually beneficial” deal by the fall of 2025.
The timing of the discussions is significant, as they take place just days before the US announces reciprocal tariffs that will come into effect on April 2.
India has submitted a non-paper—an informal, non-binding document—to share its perspectives and initial proposals with the US on the trade agreement. The US is expected to respond to the non-paper within the week. According to sources familiar with the matter, the non-paper aims to serve as a temperature check and potential launch point for formal negotiations.
“India shared a non-paper (with the US), and the US side is expected to do the same. The idea is to see if it can be a starting point for discussions,” one of the persons aware of the development said.
Official negotiations will begin once both sides agree on the framework and direction of the agreement.
Although the contents of India’s non-paper remain undisclosed, it is understood that the country is prepared to reduce tariffs across multiple product segments. These include labour-intensive sectors such as textiles and leather.
New Delhi has been under sustained pressure to lower tariffs on automobiles and alcoholic beverages. Notably, import duties on alcohol in India currently exceed 100%.
Agriculture remains another contentious area, with the US pushing for better market access by advocating lower tariffs in the sector.
The delegation’s visit follows Commerce and Industry Minister Piyush Goyal’s trip to the US from March 4-6, where he held talks with key American trade officials, including US Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick.
Earlier this week, Commerce Secretary Sunil Barthwal confirmed that there had been tangible progress in trade discussions. He told reporters on Monday that India anticipates a positive outcome from the ongoing talks. Barthwal also mentioned that the Department of Commerce has been actively engaging with stakeholders to evaluate the challenges, opportunities, and broader impact of the proposed reciprocal tariffs on Indian exports.
Meanwhile, in an interview with Breitbart News, US President Donald Trump said he believed India would eventually reduce tariffs on American goods. He acknowledged that he maintained good relations with India but reiterated concerns over the country’s high tariff rates.
Trump remarked that India ranks among the highest tariff-imposing nations globally and reiterated that the US plans to move ahead with reciprocal tariffs starting on April 2.
Source: Business Standard