First phase of India-US trade deal nearing closure; to address tariff issues: Official

Negotiations for the pact are important, as relations between the two countries have been under severe strain since the US President Donald Trump administration imposed a steep 50 per cent tariff on Indian goods.It includes a 25 per cent additional import duty for buying Russian crude oil.The proposed pact aims to more than double the bilateral trade to USD 500 billion by 2030 from the current USD 191 billion.The US is seeking greater market access for its products such as almonds, pistachios, apples, ethanol and genetically modified commodities.The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion (USD 86.5 billion exports).It accounts for about 18 per cent of India’s total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country’s total merchandise trade.India’s merchandise exports to the US declined 11.93 per cent to USD 5.46 billion in September due to the high tariffs imposed by Washington, while imports increased 11.78 per cent to USD 3.98 billion during the month, according to commerce ministry data.Trump has recently stated that the US is “pretty close” to reaching a “fair trade deal” with India, adding that he will lower tariffs imposed on Indian goods at “some point.”When asked for comments on a bill in the US that would allow Trump to impose tariffs of up to 500 per cent on imports from countries that have trade ties with Russia, the secretary said that all over the world, countries trade with other nations based on their bilateral relationship and economic requirements.”We have not got into the depth of it. But at the same time, let me tell you (that) as a country, each country all over the world trades with other countries based on their bilateral relationship, based on their economic requirement, and those trade carries on.”I think our trade decisions will remain guided by that,” he added.



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