Indian and U.S. officials have discussed trade issues, including tariff reductions and easing non-tariff barriers, as President Donald Trump prepares to impose reciprocal tariffs on multiple trading partners from April 2. A bilateral trade deal is moving forward during days of talks in the capital, New Delhi, they said on Saturday (March 29). Reuters reported.
According to the report, the talks were led by officials from the Indian Ministry of Commerce and a US trade delegation led by Assistant U.S. Trade Representative for South and Central Asia Brendan Lynch, which took place from March 26-29.
Meanwhile, U.S. Deputy Secretary of State Christopher Landau held separate talks with Indian Foreign Secretary Vikram Misri. The talks focused on efforts to reduce trade barriers and build a “fair and balanced bilateral trade relationship,” as well as increasing defense and technology cooperation to strengthen regional security.
In addition, the U.S. State Department said in a statement that Landau thanked India for its efforts to combat illegal immigration to the United States. He called for continued cooperation.
According to Reuters, India is hoping for a breakthrough in bilateral talks, and both countries aim to sign the first phase of a bilateral trade deal by the autumn.
According to a statement by the Indian Ministry of Commerce, the successful conclusion of the talks reflects progress in efforts to expand the India-U.S. bilateral trade and investment relationship, which will promote prosperity, security, and innovation in both countries.
India pledged to increase purchases of U.S. energy products and defense equipment during a meeting with Trump during Prime Minister Narendra Modi’s visit to Washington on February 13. The two countries agreed to work towards an agreement to target bilateral trade of $500 billion by 2030.
President Trump has repeatedly referred to India as a “tariff king.” The United States wants India to reduce tariffs on products ranging from agricultural products and alcoholic beverages to automobiles and clear the way for more market access for U.S. companies.
Indian Trade Minister Piyush Goyal visited Washington earlier this month from March 4-6 for talks with U.S. Trade Representative Amieson Greer and Commerce Secretary Howard Lutnick.
According to Reuters, sector-specific expert engagements for the bilateral trade agreement will begin virtually in the coming weeks, followed by an in-person negotiating round, the joint statement said.
The United States currently has a $45.6 billion trade deficit with India, which ranks 10th. According to World Trade Organization data, while the U.S. trade-weighted average tariff rate stands at about 2.2%, India’s average tariff is significantly higher at 12%.
