A US trade negotiating team led by Deputy US Trade Representative Rick Switzer is expected in New Delhi next week for a three-day informal round of discussions on the first phase of the bilateral trade deal, according to sources. The engagement—scheduled to begin on December 10—marks the first significant interaction since the pre-Diwali talks in Washington DC, where progress had been limited.
The timing of the visit is significant as it follows Russian President Vladimir Putin’s high-profile December 4–5 trip to India, during which both sides pledged to boost bilateral trade and investments. Washington is expected to seek clarity on New Delhi’s future plans for trade with Russia and continued purchases of Russian oil.
India pushes for tariff rollback by year-end
New Delhi’s priority remains securing a rollback of the 50 per cent additional US tariffs on Indian goods, which comprise a 25 per cent reciprocal duty and a further 25 per cent penalty linked to India’s Russian oil imports. With the full tariff impact kicking in at the end of August, several Indian export categories—particularly labour-intensive goods—have already been hit.
During the mid-October meeting in Washington, India submitted a tentative list of market-access concessions for US goods, hoping Washington would respond by lowering tariffs. “That has not happened yet,” a source said, adding that the upcoming discussions may bring clarity on the US position.
Commerce Secretary Rajesh Agrawal had recently expressed optimism that an agreement addressing the punitive tariffs could be clinched by the end of the year. However, he also acknowledged that some decisions required a political call and that even a single unresolved issue could delay the deal.
Non-negotiables remain
India continues to hold firm on long-standing sensitivities in the dairy and agricultural sectors. US demands for access to dairy products and genetically modified (GM) soybean and corn remain “non-negotiable,” officials indicated.
The US administration is also expected to raise questions over India’s continued, though reduced, imports of Russian crude—an issue repeatedly flagged by President Donald Trump, who has sought significant cuts in India-Russia energy trade.
Despite the tensions, the US remained India’s largest trading partner for the fourth straight year in 2024-25, with bilateral trade at $131.84 billion and Indian exports at $86.5 billion.
