India, US Move Closer to Bilateral Trade Deal Amid Trump’s Tariff Blitz -

India and the US inch toward finalizing a long-awaited bilateral trade deal following high-level talks between Jaishankar and US Secretary of State Marco Rubio, amid Trump’s sweeping reciprocal tariffs.

Ravi Singh

New Delhi/Washington D.C., April 8, 2025 – In a significant step towards resolving long-pending trade issues, India and the United States have agreed on the need for the “early conclusion” of a proposed bilateral trade agreement. This crucial development unfolded during a high-level phone conversation between India’s External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio, days after President Donald Trump reignited his “America First” agenda with a fresh wave of reciprocal tariffs targeting 50 countries, including India.

Taking to social media platform X, Jaishankar shared insights from the dialogue, stating,
“Good to speak with @SecRubio today. Exchanged perspectives on the Indo-Pacific, the Indian subcontinent, Europe, Middle East/West Asia, and the Caribbean. Agreed on the importance of the early conclusion of the bilateral trade agreement. Look forward to remaining in touch.”

Good to speak with @SecRubio today.

Exchanged perspectives on the Indo-Pacific, the Indian Sub-continent, Europe, Middle East/West Asia and the Caribbean.

Agreed on the importance of the early conclusion of the Bilateral Trade Agreement.

Look forward to remaining in touch.…
— Dr. S. Jaishankar (@DrSJaishankar) April 7, 2025

Key Issues on the Table

The renewed push for the trade deal comes at a critical juncture when the global market is reeling under the impact of rising protectionism. President Trump’s move to impose 26% reciprocal tariffs on Indian imports has created ripples across the Indian export industry. The Trump administration argues that these tariffs aim to correct unfair trade practices and reduce the US trade deficit.

According to the official US readout,
“The Secretary and External Affairs Minister affirmed the strength of the U.S.-India strategic partnership and discussed opportunities to deepen collaboration in the Indo-Pacific region. They also discussed U.S. reciprocal tariffs on India and how to make progress toward a fair and balanced trade relationship.”

Backstory: Long Road to Trade Peace

Trade tensions between the two nations have simmered over the past few years, especially with the US raising concerns over India’s high import duties on American products. However, efforts to bridge the gap gained momentum after talks between Prime Minister Narendra Modi and President Trump in Washington, D.C., in early 2025. The two leaders agreed to work towards finalizing the first phase of a bilateral trade agreement by fall 2025.

Last month, US Assistant Trade Representative Brendan Lynch visited New Delhi and engaged in extensive discussions with Indian officials to iron out the technical and tariff-related bottlenecks in the proposed pact.

What This Means for India

The trade deal, once concluded, is expected to unlock new growth opportunities for Indian exporters in sectors like textiles, pharmaceuticals, IT services, and agricultural products. However, the immediate challenge remains the impact of the 26% reciprocal duty which threatens the competitiveness of Indian goods in the US market.

Experts believe this renewed diplomatic push signals a willingness on both sides to compromise and build a trade partnership that’s more balanced, sustainable, and future-ready.

Frequently Asked Questions (FAQs)

What is the India-US bilateral trade deal about?

The India-US bilateral trade deal is a proposed agreement aimed at reducing trade barriers, enhancing market access, and fostering fair trade between the two countries. It seeks to address tariff issues, streamline regulations, and promote investment-friendly policies.

Why did President Trump impose reciprocal tariffs on India?

As part of his “America First” policy, President Trump introduced 26% reciprocal tariffs on Indian imports, citing that India imposes high import duties on American products. The goal is to reduce the US trade deficit and boost domestic manufacturing.

When is the trade deal expected to be finalized?

Both India and the US have agreed to conclude the first phase of the trade agreement by fall 2025, following discussions held between Prime Minister Narendra Modi and President Trump earlier this year.

How will the trade deal benefit India?

The deal is expected to boost Indian exports, especially in sectors like pharmaceuticals, IT services, textiles, and agriculture. It could also lead to increased foreign investment and deeper strategic cooperation.

What were the key points discussed between Jaishankar and Marco Rubio?

The two leaders discussed the early conclusion of the trade agreement, reciprocal tariffs, and broader regional issues including developments in the Indo-Pacific, Europe, the Middle East, and the Caribbean.

What is the current impact of tariffs on Indian exporters?

The newly imposed 26% US tariffs, in addition to existing duties, are expected to affect the competitiveness of Indian goods in the US market, putting pressure on exporters until the trade deal brings relief.