Archive · 29 Sep 2026
India-US Trade Deal Advances Amid Tariff and Relationship Uncertainty
India and the United States are working on a trade agreement.
Jaishankar said the two countries mostly understand what the agreement should contain.
He called the deal very close to finished.
However, changing US tariff rules and an ongoing Section 301 process have made the timing uncertain.
India wants the talks to consider its many small farmers and factories.
Piyush Goyal said the agreement was “done and dusted” once India receives a fair advantage in the US market.
Jaishankar said completing the deal could help improve relations.
He also said terrorism, travel between countries and public opinion affect the partnership.
S. Jaishankar said India and the United States have reached broad agreement on a proposed trade deal.
He described the agreement as “very, very far advanced,” but said changing US tariffs and the Section 301 process complicate its conclusion.
Jaishankar said negotiations took time because India has many small farmers and manufacturers and a production structure different from that of the United States.
He said concluding the agreement could help improve bilateral ties after prolonged negotiations created “bumps” in the relationship.
Piyush Goyal called the pact “done and dusted,” while Jaishankar said its timing remained uncertain and cited terrorism, mobility and public opinion as wider concerns.
- Who
- India, the United States, External Affairs Minister S. Jaishankar and Commerce and Industry Minister Piyush Goyal.
- What
- The countries have reached a broad understanding on a proposed trade agreement, but its completion and timing remain unsettled.
- When
- Jaishankar made the comments on September 29, during the conclusion of the high-level week of the 81st United Nations General Assembly session; Goyal was scheduled to visit the United States from September 29 to October 5.
- Where
- New York; Goyal was scheduled to hold talks in the United States, including at a G20 meeting in Milwaukee.
- Why
- Changing US tariff policy, the unfolding Section 301 process, differences between the economies, terrorism concerns, mobility issues and public opinion are affecting the agreement and wider bilateral ties.
Deal Nearly Complete
Timing Still Unsettled
Readiness of the agreement
Deal Nearly Complete
Piyush Goyal said the trade pact was “done and dusted” and could be executed once India receives the right competitive advantage in the US market.
Timing Still Unsettled
Jaishankar said the agreement was very far advanced but that the timing of its conclusion depended partly on changes in US tariff policy and the unfolding Section 301 process.
Effect on bilateral ties
Deal Nearly Complete
Jaishankar said concluding the agreement could help put India-US relations on a better course and move them toward an upward trajectory.
Timing Still Unsettled
Jaishankar also said the lengthy negotiations had created “bumps” in the relationship, while terrorism, mobility and public opinion remained important concerns.
Speed of negotiations
Deal Nearly Complete
The broad understanding between the countries and Goyal’s comments suggest that the pact is close to execution.
Timing Still Unsettled
Jaishankar said expectations of rapid progress had been tested by India’s economic complexity and changes in the American tariff framework.
- Agreement status
- Jaishankar said there was “more or less an understanding” and described the agreement as “very, very far advanced.”
- First-phase framework
- India and the United States announced the finalisation of a framework for the first phase of the bilateral agreement in February.
- US tariff changes
- The US Supreme Court struck down reciprocal tariffs imposed under emergency powers, after which Washington adopted a different tariff framework.
- Section 301 tariff
- The United States imposed an additional 10 per cent tariff on imports from India in July after a Section 301 probe concerning goods produced with forced labour.
- Negotiation challenge
- Jaishankar said India’s many small agriculture producers and factories required patient and detailed negotiations.
- Goyal’s assessment
- Piyush Goyal said the pact was “done and dusted” and would be executed once India receives the right competitive advantage in the US market.
- Wider relationship concerns
- Jaishankar identified terrorism, movement of people and public opinion as factors affecting India-US ties.
Sources
India-US Ties: Trade Agreement Could Help Move Relationship Forward, Says EAM Jaishankar
India-US trade deal far advanced: EAM Jaishankar
Trade agreement can contribute to ‘better’ India-US ties: EAM Jaishankar
