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India US Trade Deal

India US Trade Deal

The trade relationship between India and the United States is one of the most significant bilateral partnerships in the world. As of 2026, the US remains India’s largest trading partner, with the two
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India US Trade Deal News

India-US trade deal: Indian delegation to visit Washington for talks this month, says US envoy Sergio Gor

The United States Ambassador to India Sergio Gor said on Thursday that an Indian delegation will travel to Washington later this month for talks on a bilateral trade deal between India and the United States. Gor, in a post on X, said he held discussions with US Trade Representative Jamieson Greer on advancing trade priorities in South and Central Asia. "Highly Productive meeting with Ambassador Greer to discuss advancing POTUS trade priorities in South and Central Asia. The United States and India have previously agreed to a trade deal, and we look forward to welcoming an Indian delegation to Washington later this month." Push to advance Trump-era trade priorities Taking to X, the US envoy said the meeting focused on advancing President Donald Trump’s trade priorities in the region. "The United States and India have previously agreed to a trade deal, and we look forward to welcoming an Indian delegation to Washington later this month," he added further. Earlier, Gor, who is currently in the United States, attended a dinner at the White House on Tuesday night where he discussed India-US ties with President Trump. White House engagement and evolving tariff framework Gor described the evening as memorable and praised Trump’s efforts in securing global stability and strengthening India-US ties. "Just had an outstanding dinner with President Trump. We discussed his unwavering determination to bring global stability, the historic achievements of his presidency, the strong future of India-US ties, and so much more! A very memorable evening as history unfolded in real time." Last month, India and the United States announced the finalisation of a framework for the first phase of their bilateral trade agreement, under which the US agreed to reduce tariffs on India to 18 per cent. However, the tariff structure has since changed following a Supreme Court ruling in the United States against President Trump’s sweeping tariffs. Subsequently, the US imposed a 10 per cent tariff on all countries for 150 days starting February 24. The trade deal focuses on comparative and preferential market access. The proposed 18 per cent tariff on India is lower than that on competitors such as China, Vietnam and Thailand. "In case under the new tariff architecture of the US, other countries will be 'at 19 or 20 or 21 or 22 per cent, then maybe India will remain at 18 per cent. But if others come down, then India will also come down. So it will depend on how the new architecture comes out. And that is something for US to take a call," the official said, adding that as of now, the deal was on 18 per cent. India is currently discussing the finer details of the agreement with the United States, as multiple elements of the deal remain under negotiation.

Frequently asked questions

As of February 2026, the reciprocal tariff on most Indian goods has been reduced to 18%, down from a previous high of 25%. Additionally, the 25% penalty tariff related to Russian oil purchases has been completely removed.
Mission 500 is a bilateral economic goal set by both governments to increase the total value of annual trade between India and the United States to $500 billion by the year 2030.
Under the 2026 trade agreement, India has committed to reducing its reliance on Russian crude oil and increasing its intake of American energy products, including liquefied natural gas (LNG) and coal.
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