India, US Close to Interim Trade Deal on Tariffs
India and the United States are close to finalising an interim trade agreement aimed at lowering reciprocal tariffs, Commerce Secretary Sunil Barthwal said, while making it clear that both sides do not want to commit to a fixed timeline. The talks are part of ongoing efforts to resolve long-standing trade frictions and create a more predictable framework for bilateral commerce.
Officials said discussions have progressed on key issues, including market access and tariff rationalisation, but stressed that the agreement must be mutually beneficial and sustainable. The interim deal is expected to address select tariff barriers while broader negotiations on a comprehensive trade arrangement continue.
No Deadline Set for Conclusion
The Commerce Secretary said negotiations are moving in a positive direction, but cautioned against rushing the process. According to him, both countries prefer a balanced outcome rather than a time-bound announcement that could leave critical issues unresolved. He added that trade talks involve complex sectors and require careful alignment of interests.
India and the US have been engaged in multiple rounds of discussions to reduce tariff-related tensions that emerged over the past few years. The proposed interim deal is seen as a confidence-building step to stabilise trade relations.
Strategic and Economic Significance
Trade between India and the US has continued to grow despite tariff disputes, with both sides viewing each other as important strategic and economic partners. Analysts say a tariff-lowering agreement could boost exports, improve investor sentiment, and strengthen supply chain cooperation.
Officials reiterated that engagement with the US remains a priority and that negotiations will continue until a fair and acceptable agreement is reached.
