Incident & reaction

Bengaluru, September 26, 2025 — India and the United States have committed to expediting negotiations for a mutually beneficial trade agreement, following recent tariff escalations by U.S. President Donald Trump. The Indian delegation, led by Commerce and Industry Minister Piyush Goyal, held constructive discussions with U.S. officials in Washington from September 22 to 24. These talks focused on resolving trade issues exacerbated by the imposition of a 50% tariff on Indian goods and a 100% tariff on branded and patented pharmaceutical products by the U.S. government.

Minister Goyal met with U.S. Trade Representative Jamieson Greer and U.S. Ambassador-designate to India Sergio Gor during his visit. Both sides agreed to intensify efforts to finalize the trade agreement, aiming to address long-standing issues such as tariff parity, market access for Indian goods like pharmaceuticals and seafood, and U.S. concerns over India’s Quality Control Orders.

Context & implications

The recent tariff hikes have significantly impacted India’s labor-intensive sectors, including textiles, engineering goods, gems and jewelry, and agricultural products. In response, India is seeking duty concessions in the proposed trade deal to alleviate the adverse effects on its exporters.

The U.S. has expressed interest in India making reforms in areas such as agriculture, dairy, e-commerce, and patent rules. However, India is unlikely to compromise on sectors that affect the livelihood of its farmers or its regulatory autonomy. India has shown flexibility by offering to cut tariffs on more than 95% of U.S. industrial goods, which do not touch its core red lines.

Government & official statements

Minister Piyush Goyal emphasized the importance of the trade talks, stating that both nations are committed to resolving trade issues and fostering a more balanced economic relationship. He highlighted the constructive nature of the discussions and the shared goal of achieving a trade agreement that benefits both countries.

Conclusion

The ongoing negotiations between India and the United States represent a critical step toward resolving trade tensions and establishing a more equitable trade framework. Both nations recognize the importance of their bilateral trade relationship and are working towards a comprehensive agreement that addresses mutual concerns and promotes economic cooperation.