Negotiations for the India-US trade deal have reached their final stretch — with an American delegation currently in Delhi to iron out the “commas and full stops”. Union Minister Piyush Goyal also indicated on Monday evening that “all the major points have been settled” following the interim announcement in early February. But the matter has gained additional urgency in recent weeks after a US Supreme Court verdict deemed the sweeping reciprocal tariffs announced by Donald Trump illegal in February.
“While finalising, how will the legal changes that have taken place in the US be reflected in the final agreement, and what kind of changes will be made accordingly. After finalising that, I am fully confident that, with the US, we will conclude the first tranche of the BTA as soon as possible, sign it and start further discussions on how to have a more comprehensive BTA,” Goyal told reporters on Monday night.
US Section 301 probe in focus
According to a Reuters report quoting sources, New Delhi is likely to discuss the ongoing Section 301 investigation and potential tariff measures with US trade officials. The Trump administration had launched investigations under Section 301 of the Trade Act of 1974 after the court order — probing ‘unfair’ trade practices against several trading partners including India while imposing a blanket 10% tariff.
“India has to discuss the tariff rate, 301 probe impact, and aim for a competitive tariff rate versus direct competition…the deal can be agreed if we get the terms fair, equitable, and balanced,” an Indian government source told Reuters.
New Delhi will seek relief from tariffs emerging from the probe during talks with Lynch and his team. The negotiators will also push for tariff treatment that gives it an advantage over competing manufacturing hubs in Asia. The official told Reuters that India India expected preferential rates compared with developing countries in South Asia and Southeast Asia, including Bangladesh, Pakistan and Sri Lanka.
Why does a US Section 301 probe affect India?
US President Donald Trump had announced a baseline 10% levy for all countries after the Supreme Court struck down his sweeping ‘reciprocal tariffs’ earlier this year. The figure was changed to a negotiated cumulative rate of 18% for India under the February 2026 interim framework. But the ongoing Section 301 probe has created apprehension about a tariff escalation that would stack on top of the global rates.
India is one of several countries that are being investigated for “unfair” trade practices by the US government under Section 301. The US President can legally hit Indian exports with heavy, targeted punitive tariffs if the probe concludes that New Delhi is engaging in “unfair” practices — specifically targeting what Washington calls structural excess manufacturing capacity in sectors like steel, textiles, and automotive goods