India-US Bilateral Trade Deal Talks Restart Despite Tensions

India-US Bilateral Trade: India has opened fresh discussions with the United States on a potential India-US Bilateral Trade Deal, Trade Minister Piyush Goyal announced on Tuesday. His remarks follow Washington’s move to double tariffs on Indian goods, citing New Delhi’s continued energy and defense ties with Russia.

Speaking at an industry chamber event, Goyal said, “We are in dialogue with the US for a BTA,” referring to the proposed Bilateral Trade Agreement. He added that India is also pushing forward with new trade pacts with regions including the European Union, Chile, Peru, New Zealand, Australia, and Oman, while having already concluded deals with the EFTA bloc, the UK, and the UAE.

“Lots have happened and lots more to go. India today contributes 18% of global growth,” Goyal emphasized.

India-US Bilateral Trade: Tariffs Trigger a Stalemate

On August 27, the United States imposed an additional 25% duty on select Indian exports, bringing total tariffs to 50%. The White House linked this decision to India’s continued purchases of Russian oil and defense equipment, arguing that New Delhi’s actions indirectly fund Moscow’s war in Ukraine.

US trade officials, including White House trade adviser Peter Navarro and Treasury Secretary Scott Bessent, criticized India for resisting Washington’s call to diversify energy imports.

The sudden escalation derailed the sixth round of talks scheduled for August 25 in New Delhi, as the US delegation pulled out days before the meeting. Officials on both sides had hoped to finalize the first phase of the India-US Bilateral Trade Deal by autumn, with a long-term target of boosting trade to $500 billion by 2030 from the current $191 billion.

Washington’s Demands vs. India’s Red Lines

The US has repeatedly pressed India to reduce tariffs on corn, soybeans, apples, almonds, and ethanol, and to allow greater access to its dairy market. However, Indian negotiators argue that such concessions could endanger the livelihoods of millions of small and marginal farmers.

Meanwhile, President Donald Trump hinted at a potential opening in his stance. In a Truth Social post on Monday, he claimed that India has offered to cut tariffs to “nothing.”

“They have now offered to cut their Tariffs to nothing, but it’s getting late. They should have done so years ago,” Trump wrote. While it remains unclear when the offer was made, analysts believe the statement indicates Washington is still open to negotiations.

Abhijit Das, a New Delhi-based international trade expert, told Bloomberg, “This looks like an attempt by Trump to soften his earlier hardline stance on India. The door for talks is not shut yet.”

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