India and the United States on Tuesday held high-level trade talks aimed at salvaging and recalibrating.
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NEW DELHI — India and the United States on Tuesday held high-level trade talks aimed at salvaging and recalibrating a proposed bilateral trade agreement after changes in US tariff policy upended a framework negotiated earlier this year.
Commerce and Industry Minister Piyush Goyal met US Trade Representative Jamieson Greer here as both sides sought to conclude an interim trade pact before July 24, when Washington's temporary 10 per cent tariff on imports from trading partners is due to expire.
"Warm welcome to @USTradeRep Amb Jamieson Greer, @USAmbIndia Amb Sergio Gor and their delegation to @DoC_GoI. Looking forward to productive discussions on the bilateral trade agreement between (India & US)," Commerce and Industry Minister Piyush Goyal said in a post on X.
Greer's two-day visit comes days after Prime Minister Narendra Modi and US President Donald Trump held their first meeting in more than a year on the sidelines of the G7 summit in France on June 17, injecting fresh momentum into trade negotiations that both sides see as critical to strengthening economic ties.
The US Embassy in India, in a social media post, said that the bilateral trade partnership is a win-win for both countries.
"Stronger ties create American manufacturing jobs while supporting India's growth as the world's largest democracy. From energy security to tech talent exchanges, we're building the future together," the embassy said.
"@USTradeRep Jamieson Greer and Indian Minister of Commerce and Industry @PiyushGoyal met in New Delhi today to advance negotiations on the Interim Agreement launched by President Trump and Prime Minister Modi," the embassy said in another post.
It added that the US remains focused on securing a fair, reciprocal trade deal that opens markets for American exporters and delivers benefits to both nations.
The talks between the ministers were focused on reworking a framework agreement announced in February that was built around tariff commitments later rendered uncertain by a US Supreme Court ruling, striking down sweeping tariffs announced by Trump.
Meanwhile, Finance Minister Nirmala Sitharaman held discussions with a delegation led by US Trade Representative Jamieson Greer here during the day.
Both sides exchanged views on strengthening bilateral trade and economic cooperation, with a focus on new opportunities for growth and deeper commercial engagement, the finance ministry said in a post on X.
The meeting at Vanijya Bhawan, the headquarters of the commerce ministry, was also attended by Commerce Secretary Rajesh Agrawal and India's chief negotiator Darpan Jain, sources said, adding that the meeting is likely to continue on Wednesday.
It follows chief negotiator-level discussions held in New Delhi earlier this month (June 2-4).
Securing preferential tariff treatment in the pact has become a central objective for New Delhi after changes in US tariff policy eroded an advantage India had expected to enjoy over regional competitors such as Vietnam and other ASEAN economies.
Under the February framework, the US had agreed to reduce tariffs on Indian goods to 18 per cent, lower than duties facing several competing exporters. However, the subsequent court ruling and Washington's decision to impose a temporary 10 per cent tariff on imports from all countries forced both sides to revisit key elements of the framework.
Agrawal, on June 15, stated that the discussions between the two sides are expected to be centred around giving final touches to the framework deal. On June 17, US President Donald Trump said the two countries are "very close" to finalising the trade agreement.
Earlier on June 5, Goyal said India and the US are moving towards closing all open ends of the interim trade agreement, and both sides are likely to execute the "very, very vibrant" first phase of the Bilateral Trade Agreement (BTA) by the middle of next month.
India and the US formally launched BTA negotiations on February 13, 2025.
In February this year, the two sides announced the contours of the first phase. It was based on the 50 per cent tariffs imposed by the US on Indian goods. However, on February 20, the US Supreme Court struck down these sweeping tariffs.
It forced the Trump administration to impose 10 per cent tariffs under Section 122 of the Trade Act on all countries for 150 days from February 24. It will expire on July 24 this year.
Under the agreed framework, India proposed to eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, including Dried Distillers' Grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.
New Delhi has also expressed its intentions to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.
As the tariff landscape changed in the US, both sides are relooking at the agreement's framework.
The February joint statement on the framework has a clause that, in the event of any changes to the agreed-upon tariffs of either country, the US and India agree that the other country may modify its commitments.
Meanwhile, to retain bargaining leverage, the US Trade Representative launched two Section 301 investigations on March 11 and 12 covering about 60 economies. One focused on alleged excess industrial capacity, while the other examined forced-labour concerns in global supply chains. India was included in both investigations.
When the framework of the first phase of the agreement was finalised, India had a comparative advantage over its competitor countries, such as ASEAN nations (Indonesia, Malaysia, Singapore, Thailand, Philippines, Brunei, Vietnam, Laos, Myanmar, Cambodia), Sri Lanka, Pakistan, and Bangladesh.
The US was the second-largest trading partner of India in 2025-26.
India's outbound shipments to the US grew marginally by 0.92 per cent to USD 87.3 billion during the last fiscal year despite high tariffs, while imports increased 15.95 per cent to USD 52.9 billion. The trade surplus declined to USD 34.4 billion in 2025-26 from USD 40.89 billion in 2024-25.