India-US in process of taking bilateral trade negotiations forward: MEA amid tariff tussle

MEA spokesperson Randhir Jaiswal

India and the United States are actively engaged in advancing their bilateral trade negotiations, the Ministry of External Affairs (MEA) said on Friday amid the ongoing tariff tussle between the two nations.

During a weekly media briefing, MEA Official Spokesperson Randhir Jaiswal stated that both governments are working diligently to establish a framework for a Bilateral Trade Agreement (BTA) aimed at expanding trade, enhancing market access, and reducing tariff and non-tariff barriers in a mutually beneficial manner, reported ANI.

"India and the US are in the process of taking bilateral trade negotiations forward. The two governments are actively working to build a framework for the BTA, which would aim to expand trade, enhance market access, reduce tariff and non-tariff barriers on a mutually beneficial basis," Jaiswal said during the briefing

"Govt of India remains engaged with the US administration at various levels to arrive at a mutually beneficial multisector bilateral trade agreement," he added.

This comes after US president Donald Trump threatened to impose reciprocal tariffs on on Indian goods, set to take effect from April 2, unless India lowers its tariffs on American products.

US President Donald Trump had earlier targeted India, saying "they have the highest tariffs" and "it is a hard place to do business".

The tariff issue has been a point of contention, with the US seeking greater market access for its goods, while India aims to protect its domestic industries.

On February 13, Prime Minister Narendra Modi and President Trump met in Washington, where they agreed to designate senior officials to expedite negotiations for a comprehensive multi-sector trade deal. The leaders set an ambitious target of achieving USD 500 billion in annual bilateral trade within the next five years, a significant jump from the current level of less than USD 200 billion in goods and services.

Next week, a delegation of US officials, led by Assistant Trade Representative Brendan Lynch, is scheduled to visit New Delhi to continue these discussions. Both sides are aiming to finalize the initial phase of a "mutually beneficial" deal by the fall of 2025.

While India has expressed readiness to reduce tariffs on certain product categories, including labour-intensive sectors like textiles and leather, it remains cautious about opening its agricultural market, a key demand from the US.

India maintains high tariffs on agricultural imports to safeguard its farmers, a stance that contrasts with the US push for tariff reductions to facilitate American farm produce entering the Indian market.