India, US Accelerate Trade Talks: Piyush Goyal Meets Commerce Secretary Lutnick, Eyes Interim Pact Before Tariff Deadline

Union Commerce Minister Piyush Goyal’s high-stakes visit to Washington has injected fresh momentum into India-US trade negotiations, with both sides racing to clinch an interim deal before the US’s 90-day tariff pause expires in July. Goyal met US Commerce Secretary Howard Lutnick and is scheduled to hold further talks with US Trade Representative Jamieson Greer, aiming to finalize the first tranche of a multi-phase Bilateral Trade Agreement (BTA).

The discussions come amid heightened urgency, as US President Donald Trump’s administration has suspended a planned 26% tariff hike on Indian goods until July 9, providing a narrow window for both nations to secure “early mutual wins.” The interim agreement is expected to cover expanded market access for industrial goods and select farm products, while also addressing key non-tariff barriers such as quality control requirements and regulatory standards.

Negotiators from both countries have already agreed on terms of reference spanning 19 chapters, including tariffs, customs facilitation, rules of origin, and regulatory issues. India’s proposal to impose retaliatory tariffs on US steel and aluminium products remains on the table, although any such move is not binding and will depend on the outcome of ongoing talks.

Both governments are targeting a phased approach, with the first phase of the BTA expected by fall 2025. The talks are described as “progressing very well” by Indian officials, though they caution that nothing is final until all issues are resolved. The US remains India’s largest trading partner, with bilateral trade totaling around $129 billion in 2024 and India holding a $45.7 billion trade surplus.

Key Highlights:

Piyush Goyal met US Commerce Secretary Howard Lutnick in Washington to expedite the first phase of the India-US trade agreement.

Both sides are working to secure an interim pact before the US’s 90-day tariff pause ends on July 9.

The interim deal is likely to include market access for industrial and agricultural goods and address non-tariff barriers.

Negotiations cover 19 chapters, including tariffs, customs, and regulatory issues.

India’s right to impose retaliatory tariffs on US steel and aluminium remains under discussion.

The phased approach aims for the first BTA tranche by fall 2025, with further talks ongoing this week.

Source: Firstpost, CNBC-TV18, Hindustan Times, The Japan Times, Business Standard, The Hindu Business Line