New Delhi: India will send a high-level commerce ministry delegation to Washington next week for the next round of trade negotiations with the US as both sides push to resolve long-standing differences ahead of a fast-approaching US tariff deadline.
The proposed bilateral trade agreement (BTA) which India hopes to finalise in phases has gained urgency after US President Donald Trump extended a suspension of additional duties on Indian goods until August 1, 2025. Any failure to conclude an interim deal before that could see Indian exports once again hit with higher levies including a 26 per cent tariff first announced in April.
The visit also comes amid rising unease in New Delhi over Washington’s recent tariff threats aimed at BRICS countries, a bloc that includes India.
What’s at stake and why it matters
The US remains India’s largest trading partner. In FY24 bilateral goods trade reached USD 191 billion according to Ministry of Commerce data. India’s exports to the US stood at USD 77.5 billion while imports were valued at USD 55.4 billion.
However this trade equation is now at risk due to rising protectionist signals from the US. On April 2, President Trump had announced steep tariffs on several countries including India citing trade imbalances. Although a temporary pause was agreed upon, that suspension ends next month.
Adding to the uncertainty Trump has warned of a 10 per cent tariff on all BRICS economies, accusing the bloc of working against American interests. “Anybody that’s in BRICS is getting a 10 per cent charge pretty soon,” he said on July 8, during a cabinet briefing.
While India has not yet received a formal tariff notification, the possibility of being included in the next tranche of letters is prompting urgency within the Ministry of Commerce.
