India and the US on Tuesday held crucial ministerial-level discussions to advance negotiations on an interim trade agreement.
The talks between visiting US Trade Representative (USTR) Jamieson Greer and Commerce and Industry Minister Piyush Goyal started in the morning and continued until late afternoon before both sides decided to take a break. Another meeting between the two is expected on Wednesday.
A U.S. Supreme Court order invalidating the “reciprocal tariffs” rendered the terms of the interim deal, agreed to in February, ineffective.”
After meeting Goyal, the USTR called upon Finance Minister Nirmala Sitharaman. Both sides exchanged views on strengthening bilateral trade and economic cooperation, focusing on new opportunities for growth and deeper commercial engagement, the Finance Ministry posted on ‘X’.
After Tuesday’s talks the US Embassy in India said, “The United States remains focused on securing a fair, reciprocal trade deal that opens markets for American exporters and delivers benefits to both nations.”
In another post it said that the bilateral trade partnership is a win-win for both countries. “Stronger ties create American manufacturing jobs while supporting India’s growth as the world’s largest democracy. From energy security to tech talent exchanges, we’re building the future together,” the embassy said.
India, on the other hand, has maintained that any deal that is arrived at between the two sides should offer India a competitive advantage against its competitors in the US market regardless of the time it takes. The deal reached between the two countries in February had given a tariff advantage against the competition.
The additional tariffs on India were brought down to 18% from 50%, which was lower than Bangladesh, Sri Lanka, Taiwan and Vietnam who faced 20% tariffs, while Pakistan, Indonesia, Malaysia, Thailand, Cambodia and the Philippines were at 19%. However, before the formal agreement could be signed the US Supreme Court invalidated the reciprocal tariffs leading to the reopening of negotiations.
Goyal had said on Monday that India is not looking at any deadline for the deal. The US, however, is looking at July 24 as the date by which it would like to enter into trade agreements with its key trade partners. Both India and the US have maintained that most of the work on the deal has been completed.
On July 24 the additional 10% tariffs imposed by the US on all imports under Section 122 of the Trade Act expire. This tariff was imposed after the Supreme Court order.
However, the US has started two investigations under Section 301 of the same Act – one on the excess manufacturing capacities and the second on the use of inputs made with forced labour for production – against major exporters to the US.
Tariffs under Section 301 will replace the 10% additional duties and will be the starting point of negotiations on trade deals with partners. After two day talks in New Delhi, Greer will visit Uzbekistan.