India-US Trade Deal Not Coming Soon, Says US Trade Representative

The proposed India-US trade deal is unlikely to be finalised immediately, despite progress in negotiations, US Trade Representative Jamieson Greer has indicated, citing unresolved issues between the two countries.

Speaking after meeting Union Commerce and Industry Minister Piyush Goyal on the sidelines of the G20 Trade Ministerial in Milwaukee, Greer said both sides were working towards an agreement but cautioned that a final announcement was not imminent.

His remarks have raised fresh questions over the timeline of a trade agreement that both New Delhi and Washington had previously indicated was close to completion.

'We Are Towards The End Of It,' Says US Trade Representative

Greer described the negotiations as being in their final stages, while making it clear that an immediate agreement should not be expected.

He said India and the US had identified the outstanding issues and were working to resolve them.

Greer also indicated that US President Donald Trump and Prime Minister Narendra Modi could hold another telephone conversation soon to review progress.

The latest comments came after Goyal and Greer held bilateral discussions on Thursday, following a telephone conversation between Modi and Trump a day earlier.

Why Is The India-US Trade Deal Facing Delays?

The two countries have been negotiating tariff arrangements and market access issues, with uncertainty over the final terms remaining a key concern.

In February, India and the US issued a joint statement on the first tranche of the proposed agreement, which included an 18% reciprocal tariff on Indian goods.

However, the US Supreme Court subsequently struck down the legal basis for the reciprocal tariff framework, raising questions over the concessions Washington could offer under the proposed arrangement.

Global Trade Research Initiative founder Ajay Srivastava said the US offer had lost its relevance following the court ruling, adding that Washington had not yet presented a more favourable alternative.

Fresh Tariff Concerns Add To Trade Negotiations

The latest discussions also come amid uncertainty over possible additional US tariffs on Indian imports.

A law passed by the US Congress authorises Trump to impose tariffs of up to 100% on major buyers of Russian oil and gas, including India.

The US President has yet to announce the final tariff rate or the extent of its application.

Separately, the US Trade Representative's Office is pursuing investigations involving India under Section 301 of the US Trade Act, including inquiries related to forced labour and structural excess manufacturing capacity.

Piyush Goyal Defends India's Manufacturing Capacity

At the G20 Trade Ministerial, Goyal rejected suggestions that India had structural excess manufacturing capacity.

He said India's manufacturing output was aligned with domestic demand and the country's economic growth.

The minister also stressed that trade measures should be based on specific, verifiable evidence rather than assumptions about entire countries, regions or industries.

When Can The India-US Trade Agreement Be Finalised?

Greer's remarks suggest that negotiations remain active, but the two sides have yet to resolve all outstanding issues.

Although another Modi-Trump conversation could take place soon, no definitive signing or announcement date has been confirmed.

For Indian exporters and businesses awaiting clarity on US tariffs and market access, the latest indication is that the proposed trade agreement may require further negotiations before it is concluded.

The immediate timeline remains uncertain, even as both governments continue to work towards a deal.