India, U.S. Accelerate Trade Talks During 90-Day Tariff Suspension
India and the United States have launched an accelerated effort to finalize a bilateral trade agreement within a 90-day window, following a temporary suspension of additional reciprocal tariffs. The suspension, announced by the U.S. administration, reduces tariffs on Indian exports from 26% back to 10% and will remain in effect until July 9, 2025.
This pause in tariff escalation provides both nations with a crucial diplomatic and economic opportunity to craft a long-term trade arrangement. The urgency of the talks stems from a shared desire to avoid the reinstatement of heightened tariffs once the grace period ends. High-level engagement between the two countries has already begun, with teams working to meet tight deadlines and prepare a draft trade agreement.
Commerce Minister Piyush Goyal is leading India’s efforts, engaging directly with his U.S. counterparts to secure a deal that balances domestic priorities with strategic trade interests. The proposed bilateral trade agreement (BTA) aims not only to resolve ongoing trade disputes but also to establish a framework for future cooperation. It aligns with the “Mission 500” vision—an ambitious target to elevate bilateral trade from its current level of approximately $200 billion to $500 billion by 2030.
The tariff suspension comes as a major relief for Indian exporters, especially in key sectors such as seafood, where products like shrimp face significant duties in the U.S. market. The rollback of tariff rates offers immediate economic breathing room and allows exporters to regain competitiveness during the negotiation period.
Beyond easing short-term trade tensions, both countries are focusing on building a comprehensive and resilient trade framework. The talks are guided by the principle of finding the “right mix and right balance,” ensuring that national industries are protected while enabling stronger global trade integration.
The success of this 90-day sprint could not only redefine India-U.S. economic ties but also establish a new template for navigating trade diplomacy during times of geopolitical and economic uncertainty.
