India and US Pursue Three-Stage Trade Deal Amid Upcoming Tariff Deadline
- India and US negotiating a three-stage trade deal.
- Interim agreement targeted before July, ahead of new US reciprocal tariffs.
- Initial phase may ease access for industrial goods and some farm products.
India is actively negotiating a trade deal with the United States, structured to unfold in three distinct stages, according to unnamed Indian officials speaking to Bloomberg. The first stage aims to secure an interim agreement before July, ahead of new reciprocal tariffs expected to be imposed by the US under President Donald Trump.
This initial phase of the deal is expected to focus on easing access for industrial goods and select agricultural products. It may also target the reduction of trade barriers such as stringent quality control regulations. Although discussions are ongoing, it remains unclear whether the US has formally agreed to the three-step framework.
Commerce Minister Piyush Goyal, currently on a four-day visit to Washington, is intensifying efforts to advance the talks. He is scheduled to meet with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick before his visit concludes on Tuesday.
The second stage of the agreement, anticipated between September and November, promises a broader and more comprehensive deal. This phase is expected to encompass 19 key sectors identified by both nations in talks held in April. The timing could coincide with a potential visit by President Trump to India during the Quad leaders’ summit, further underscoring the strategic importance of the deal.
The final stage will be a full-fledged trade agreement, which would require approval from the US Congress. Officials estimate this phase may only be completed in the coming year.
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India was among the first countries to initiate trade discussions with the US following Prime Minister Narendra Modi’s visit to the White House in February, shortly after Trump took office. Both leaders agreed to enhance bilateral trade and aimed to conclude the first part of the deal by fall. Since then, India has prioritized achieving early trade benefits ahead of the tariff deadline.
