Key US delegation arrives in New Delhi to seal interim India-US trade pact amid tariff concerns

A US delegation, led by chief negotiator Brendan Lynch, has arrived in India to hold three days of talks to finalise the India-US interim bilateral trade agreement (BTA), starting on Tuesday. The delegation will hold meetings with India's chief negotiator Darpan Jain, Additional Secretary in the Department of Commerce.  

The talks are expected to focus on ironing out the remaining issues in the proposed interim agreement while advancing negotiations on a broader trade pact, with New Delhi seeking protection from any future tariff actions arising from ongoing US trade investigations. 

Commerce and Industry Minister Piyush Goyal on Monday indicated that most elements of the agreement have already been settled. "Mostly, everything is finalised," Goyal said. "As you know, US Ambassador Garcetti said that 99% of the things have been finalised. Discussions are going on about small issues, commas and full stops." 

Challenges of legal and policy changes in the US 

The latest round of negotiations comes against the backdrop of legal and policy changes in the US. Following a US Supreme Court ruling that struck down President Donald Trump's reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), Washington initiated investigations under Section 301 of the Trade Act into several countries, including India, over concerns related to forced labour and excess production capacity. 

India demands assurance this time 

According to reports, India is expected to seek assurances that any tariffs arising from these investigations will not undermine the proposed trade arrangement. New Delhi has rejected the allegations and urged Washington to address the issues through bilateral negotiations rather than unilateral trade measures. 

"The agreement is under process to meet demands of some recent legal changes in the US," Goyal said. "After finalising that, I am fully confident that, with the US, we will conclude the first tranche of the BTA as soon as possible." 

The broader BTA under negotiation is expected to cover market access, customs facilitation, non-tariff barriers, investment promotion, digital trade rules and supply chain cooperation. Earlier, the US Embassy in New Delhi said both countries were working towards a trade agreement that would be "enduring, beneficial, and sustainable for both countries." 

“Competitive advantage over peer economies” 

Under the proposed framework, India has offered to eliminate or reduce tariffs on a range of US industrial and agricultural products while committing to address non-tariff barriers. The two countries have also agreed to deepen cooperation in technology, strengthen supply chain resilience and expand bilateral trade in strategic sectors. 

Goyal said India would prefer a deal that provides the country a "competitive advantage over peer economies", underscoring New Delhi's focus on securing balanced and commercially meaningful market access in the final agreement.