Archive · 1 Sep 2026
India-US Trade Pact Talks Intensify Amid Exporter Tariff Concerns
India and the United States are negotiating a trade agreement.
Indian exporters say they are unsure how much tax their goods will face in the US.
Because of this uncertainty, some American buyers are ordering fewer products and avoiding long-term commitments.
Exporters want the agreement completed soon.
They also want India to receive fair treatment compared with competing countries.
The commerce ministry asked businesses to explain their problems so officials can raise them with the US.
India and the US will continue discussing the agreement during upcoming meetings.
The two countries traded USD 140.76 billion in goods during 2025-26.
India’s commerce ministry sought exporters’ concerns about access to the US market for discussion with American officials.
Exporters urged the government to conclude the bilateral trade agreement quickly to reduce tariff uncertainty.
US buyers are placing smaller and shorter-term orders while diversifying import sources, an exporter said.
Industry representatives objected to US safeguard measures on quartz surface products and requested government intervention.
India-US trade reached USD 140.76 billion in 2025-26, while India’s trade surplus narrowed to USD 33.9 billion.
- Who
- India’s commerce ministry, Indian exporters and industry groups, and US trade officials are involved.
- What
- The ministry is gathering exporter concerns while India and the United States continue negotiating a bilateral trade agreement.
- When
- The meeting was held on September 1; Commerce Minister Piyush Goyal is expected to visit the US in late September, with the G20 Trade Ministerial beginning September 30.
- Where
- The consultation took place in New Delhi; planned discussions include Milwaukee and Chicago in the United States.
- Why
- Exporters face uncertainty over US tariffs, reduced order commitments, and competition from other countries.
Exporter and Industry Priorities
Negotiating Position and US Measures
Timing of the trade pact
Exporter and Industry Priorities
Some exporters want India to conclude the agreement as soon as possible to reduce uncertainty over tariffs.
Negotiating Position and US Measures
The agreement remains under negotiation, and Piyush Goyal has said its first tranche will operate once the United States ensures India has a comparative advantage over competitors.
Tariff competitiveness
Exporter and Industry Priorities
Indian exporters want tariff treatment that gives their goods price competitiveness against suppliers from countries such as Bangladesh, Vietnam, Thailand and Malaysia.
Negotiating Position and US Measures
The United States has imposed an additional 10 per cent tariff on several countries, including India, creating a tariff environment that has prompted further negotiations.
Quartz surface products
Exporter and Industry Priorities
Industry representatives urged India’s commerce ministry to challenge US safeguard measures imposed on quartz surface products.
Negotiating Position and US Measures
The US safeguard measures remain in place, according to the article, and American authorities’ position on the industry’s request was not reported.
- India-US trade, 2025-26
- Total trade was USD 140.76 billion.
- Indian exports to the US
- Exports rose marginally to USD 87.31 billion from USD 86.51 billion in the previous fiscal year.
- Indian imports from the US
- Imports increased to USD 53.45 billion from USD 45.62 billion.
- Trade surplus
- India’s surplus was USD 33.9 billion in 2025-26, down from USD 40.9 billion.
- Additional US tariff
- The US imposed an additional 10 per cent tariff on several countries, including India, from July 24.
- Represented sectors
- Participants represented pharmaceuticals, engineering, textiles, agriculture, chemicals, marine products, leather, automobiles, handicrafts and plastics.
- Upcoming ministerial
- The two-day G20 Trade Ministerial is scheduled to begin on September 30 in Milwaukee.