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US President Donald Trump and Prime Minister Narendra Modi announced a plan to negotiate the first installment of the bilateral trade agreement by cutting the tariff.
Union Commerce Minister Piyush Goyal with American Trade Representative Jaimison Greer. (Piyush Goyal/X)
Union Commerce Minister Piyush Goyal said on Friday that he had “forward” with American trade representative Jaimison Greer on a mutually beneficial bilateral trade agreement.
Goyal had previously interacted with Greir and US Commerce Secretary Howard Lutynik on a mutually beneficial, multi-regional bilateral trade agreement (BTA) between the two countries during his visit to the United States earlier this month.
“There was a further discussion with @USTRADEREP Jemison Greer on a mutually beneficial bilateral trade agreement. Our approach will be directed by ‘India First’, ‘Wikit Bharat’ and our broad strategic partnership, “Goyal said on X.
There was a further discussion with @USTRADEREP Jaimison Greer on a mutually beneficial bilateral trade agreement. Our approach will be directed by ‘India First’, ‘Wikit India’ and our broad strategic partnership. pic.twitter.com/0KkyWalep7
– Piyush Goyal (@Piyushgooyal) March 14, 2025
What is India-American bilateral trade deal?
US President Donald Trump and Prime Minister Narendra Modi announced a plan to negotiate the first installment of a mutually beneficial, multi-regional bilateral trade agreement (BTA), during the subsequent visit to the White House in February.
The two leaders pledged to expand business and investment to make their citizens more rich, strengthening nations, more innovative, and more flexible to economies. The Ministry of External Affairs said, “Through BTA, we aim to strengthen and deepen Indo-American two-way trade in the field of goods and services, increase market access, reduce tariffs and non-tariff barriers and deepen supply chain integration between the two countries.”
He pledged to deepen the US-India trade relationship to promote development, which ensures fairness, national security and employment generation. To end this, the leaders set a bold new target for bilateral trade – “Mission 500” – by 2030 the target of total bilateral trade over 500 billion USD.
Trump’s tariff threatens
However, since assuming office in January, Trump has repeatedly criticized India’s tariff rates, describing the country as “tariff king” and “tariff abuser”. Prior to PM Modi’s visit to the White House, Trump announced a mutual tariff on his colleagues including New Delhi.
Trump has recently claimed that India has agreed to cut its tariffs “down” as he has reiterated his claim that the country accuses the US of large scale tariffs that make it difficult to sell the products. “They agree. They now want to cut their tariffs because someone is finally exposing them for what they have done,” he said.
However, India’s Commerce Secretary clarified that India is still negotiating with the United States and has not yet made any commitment, according to sources. Commerce Secretary Sunil Barthwal told a parliamentary committee that the US has not imposed any tariff on India despite the first announcement of mutual tariffs.
India exported goods worth about $ 74 billion to the US in 2024, which establishes the US as India’s largest trading partner. High tariffs on Indian products are likely to reduce its competitive edge in the US market that will give a tough competition to major labor-intensive areas.
India has already stated that it is deepening trade relations with the US, including reducing tariffs and non-tariff barriers through bilateral trade deal. US Commerce Secretary Howard Lutnik said in a conversation with India Today TV that the US wants a more balanced trade relationship with India, emphasizing the need for fair trade policies.
(With agency input)
