Indian Commerce Minister Piyush Goyal to hold trade talks in the United States between May 17 and 20
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.
India seeks duty cuts on textiles, gems, leather;
....and Americans want cuts on autos, dairy
Both countries will try to take advantage of the ongoing 90-day tariff pause to reach an interim agreement and score "early mutual wins" before the first phase of the trade deal is announced.
The pact may be announced in October 2025.
The US has suspended 26 per cent levies on Indian imports till July 9 -- which was announced by Trump on April 2 to bridge the trade gap -- while the baseline tariff of 10 per cent still stands.
During the four-day talks from May 17 to 20, Piyush Goyal is expected to hold meetings with US Trade Representative (USTR) Jamieson Greer and US Commerce Secretary Howard Lutnick.
The talks also come at a point when Trump -- after announcing a surprise ceasefire agreement between India and Pakistan on May 10th -- claimed that he had threatened to cut trade ties with both sides.
"I said, let’s stop it. If you stop it, we’re doing trade. If you don’t stop it we’re not going to do any trade," Trump was quoted as telling reporters at The White House on Monday.
Trump also revealed that his administration is "negotiating with India" at present, adding that Washington is even planning to kickstart trade negotiations with Islamabad.
However, India vehemently denied Trump's claims, stating that trade was never brought up in conversations between Indian and American officials following the launch of Operation Sindoor.
"From the time OPERATION SINDOOR commenced on 7th May, till the understanding on cessation of firing and military action on 10th May, there were conversations between Indian and U.S. leaders on the evolving military situation. The issue of trade did not come up in any of these discussions," MEA spokesman Randhir Jaiswal said on Tuesday.
India's recent proposal to the World Trade Organisation to slap retaliatory tariffs on the US -- in response to its import duties on Indian steel and aluminium -- will also feature in the upcoming trade talks during deliberations on the BTA.
New Delhi is seeking duty cuts on sectors such as gems and jewellery, leather goods, textiles, garments, plastics, chemicals, shrimp, oil seeds and also grapes, and bananas.
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| Blogger and 'charkha' of Karma |
India, now the world’s second-largest crude steel producer, has long contested US tariffs.
The move to formally escalate the matter at the WTO signals growing trade friction between the two countries.
Ironically, the escalation comes just as New Delhi and Washington are reportedly close to finalising a new trade agreement. India is said to have offered a significant concession—cutting its tariff gap by nearly two-thirds—to help clinch the deal.
The US, on the other hand, has asked for slashing tariffs on certain sectors like automobiles, including electric vehicles, wines, petrochemical products, dairy, agricultural items such as apples, and tree nuts.
India shares a trade surplus with the US in goods for the year 2024–25 -- meaning Washington imports more from Delhi than it exports to Delhi. In fact, the trade deficit has only widened since 2020, raising concerns among top US officials.
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