Archive · 6 Oct 2026
India-US Trade Talks Stall as Both Sides Hold Firm
India and the United States have been trying to make a trade deal, but talks have become difficult.
India’s finance minister says both countries may have little room to make more concessions, though the discussions are continuing.
A U.S. official says the deal is in its final phase but is not ready yet.
The countries disagree about tariffs, access to markets, and India’s purchases of Russian oil.
India wants to protect some farm industries and get reliable terms for its exporters.
The United States wants to address its trade deficit with India and has urged India to buy less Russian oil.
A U.S. investigation into trade and a law allowing possible Russia-related tariffs add uncertainty.
Officials have discussed further talks, but the articles do not report a final agreement.
Nirmala Sitharaman said negotiations have reached a plateau, with further concessions difficult, while talks remain ongoing.
U.S. Trade Representative Jamieson Greer said the deal is in its final phase but is not imminent.
A February framework reduced the U.S. tariff on most Indian goods from 50% to 18%; a separate ruling later set a 10% global baseline tariff.
Unresolved issues include possible Russia-related tariffs of up to 100%, a pending Section 301 investigation, and market access for sensitive Indian farm sectors.
India is seeking better, predictable terms for its exporters and protection for sensitive sectors; U.S. concerns include the trade imbalance and India's Russian oil purchases.
- Who
- India and the United States; comments cited include Finance Minister Nirmala Sitharaman and U.S. Trade Representative Jamieson Greer.
- What
- Bilateral trade negotiations have stalled at a difficult point, with major issues unresolved.
- When
- Negotiations began in February 2025; officials described the talks as stalled in recent comments.
- Where
- The negotiations concern trade between India and the United States; Sitharaman made remarks at an event in New Delhi.
- Why
- The sides differ over tariffs, market access, India's Russian energy purchases, and how to address the trade imbalance.
India's stated priorities
U.S. priorities and concerns
Tariffs and trade balance
India's stated priorities
Sitharaman argued that trade imbalances should be addressed through negotiation and give-and-take, rather than unilateral tariff measures; India seeks better and more certain tariff treatment.
U.S. priorities and concerns
Sitharaman said Washington wants to reduce its trade imbalance with India; U.S. tariff measures and investigations remain part of the dispute.
Agriculture and market access
India's stated priorities
India wants to protect sensitive sectors, including dairy, poultry, rice, and wheat, while securing competitive terms for its exporters.
U.S. priorities and concerns
The articles describe U.S. efforts to obtain market access and address trade barriers, but do not specify U.S. positions on each listed farm sector.
Russian energy purchases
India's stated priorities
India says fuel sourcing is driven by the energy needs of its population; the editorial argues energy decisions should reflect India's security and national interest.
U.S. priorities and concerns
The Trump administration has urged India to reduce Russian oil purchases, arguing that the purchases help finance Russia's war in Ukraine.
- Negotiations began
- February 2025
- February framework
- Reduced the U.S. tariff on most Indian goods from 50% to 18%, according to the articles.
- Current baseline tariff
- The Reuters report says the Supreme Court ruling led to a 10% baseline rate.
- Potential Russia-related tariffs
- A U.S. law described in the articles gives the president authority to impose tariffs of up to 100% on qualifying countries purchasing Russian oil or gas.
- Section 301 investigation
- The U.S. investigation examines alleged excess industrial capacity and its effects on American industries; its outcome could affect tariffs on Indian goods.
- India-U.S. trade balance
- Reuters reported that India had a nearly $34 billion trade surplus with the United States in fiscal year 2025/26.
- India's goods exports to the U.S.
- They were $42.79 billion in April-August, compared with $40.39 billion a year earlier, according to Reuters.
Sources
Why have India-US trade talks stalled again and what's next?
Hold the line
India-US trade deal: Nirmala Sitharaman says negotiations hit plateau over concessions - Telegraph India
India-US trade talks hit plateau, Sitharaman says further movement will be ‘very, very difficult’
Explainer-Why have India-US trade talks stalled again and what’s next?
