Business · Trade · 1 hr ago
India-US trade pact talks advance, but tariff and farm issues remain
India and the US are negotiating an interim trade pact, and Indian Commerce Minister Piyush Goyal says most discussions are complete.
The two countries announced a framework in February, but changes in US tariffs led to further negotiations.
The framework set an 18% tariff on Indian goods, while a separate account says India now faces an additional 10% levy and is unwilling to accept a higher rate.
Tariff differences remain a central obstacle, according to people tracking the talks.
India is also weighing the domestic political impact of agricultural concessions sought by the US administration.
The proposed pact would reduce or remove tariffs on some goods, while India has said it intends to buy $500 billion in US products over five years.
The two sides have continued discussions, including meetings in October, but the accounts differ on whether the deal is nearing completion or remains stalled.
Some people tracking the matter say India may wait until after US mid-term elections before deciding how to proceed.
India and the US have concluded most discussions on a proposed trade pact and are fine-tuning it, Commerce Minister Piyush Goyal said.
A separate report, citing sources, said the interim deal remained stalled over tariffs and agricultural concessions.
The US seeks to retain an 18 per cent tariff rate under the February framework, while India is unwilling to accept more than the current additional 10 per cent levy, the report said.
India is also weighing the domestic political impact of agricultural concessions ahead of US mid-term elections, according to sources.
Negotiations continued after a US Supreme Court ruling changed the tariff landscape.
- Who
- India and the United States, including India’s Commerce Minister Piyush Goyal and US officials.
- What
- They are negotiating a proposed bilateral trade pact. India says most discussions are concluded, while sources say the interim deal remains stalled over tariffs and agricultural concessions.
- When
- Goyal spoke on Monday, October 26, 2026. The talks included meetings on October 1 and October 15–17.
- Where
- Goyal spoke in The Hague; a negotiating team held talks in Washington.
- Why
- The two sides disagree over tariffs, and India is weighing the economic and domestic political effects of agricultural concessions.
India
United States
Tariffs
India
India is unwilling to accept more than the current additional 10 per cent levy on its exports, sources said.
United States
Washington wants to retain the 18 per cent rate envisaged in the February framework, according to sources.
Agriculture
India
India is weighing the domestic political impact of agricultural concessions and may wait until after the US mid-term elections, sources said.
United States
The Trump administration hopes to showcase agricultural concessions to voters in Republican-leaning states, the report said.
India and the US announced the framework for the first phase of the trade agreement.
Goyal met US Trade Representative Jamieson Greer on the sidelines of the G20 Trade Ministerial in Milwaukee and called the talks productive.
A team led by Commerce Secretary Rajesh Agrawal held talks with US officials in Washington.
Hindu BusinessLine reported, citing sources, that the interim pact remained stalled over tariffs and agricultural concessions.
Goyal said in The Hague that most discussions had concluded and the agreement was being fine-tuned.
- Proposed tariff rate
- 18 per cent under the February framework
- Current additional levy cited by sources
- 10 per cent under Section 301
- Goyal’s Netherlands visit
- October 24–27, 2026
- Washington talks
- October 15–17, 2026
- Proposed US purchases by India
- $500 billion worth of products over five years
3 sources
What people are saying
We have concluded most of the discussions and are fine-tuning the agreement
At this moment, it is not economically feasible for India to accept tariffs greater than the current 10 per cent imposed on its exports under Section 301 (prohibition against forced labour imports).
For New Delhi, accepting agricultural concessions alongside a higher tariff burden could be difficult to defend domestically right now. So, the deal must wait till there is more clarity on the political situation in the US.