India, US Continue Trade Talks Amid Tariff Uncertainty

India and the United States are talking about a big deal called a trade agreement that would make it easier for companies in both countries to buy and sell things to each other.

In February, the two countries agreed on the first part of this deal.

Since then, the United States has changed some of its taxes on goods from other countries, which has made the talks more complicated.

The United States' highest court, the Supreme Court, also removed an older tax rule, adding more uncertainty.

India is now paying an extra 10% tax on some goods because of an American investigation into alleged forced labour concerns.

The American Senate approved a bill that could let the president place very high taxes, up to 100%, on goods from countries that buy Russian oil, which could affect India.

India is being careful and says it will sign the first part of the deal only when it gets better tax terms than its competitors.

A finished trade deal would give businesses in both countries more stability and predictability.

Indian officials also said it is misleading and factually incorrect to link reforms to India's UPI payment system to the trade talks.

Both countries say they are working towards finishing the talks soon.