Overview
- Senior US and Indian officials say roughly 99% of the interim trade agreement text is agreed and only technical legal phrasing and implementation timelines remain to be resolved.
- A USTR delegation led by the chief negotiator held four days of talks in New Delhi from June 1 to June 4 to press the deal toward conclusion.
- President Donald Trump publicly expressed confidence a deal will be reached and officials expect the interim pact to be finalised within several weeks rather than months or years.
- A parallel Office of the United States Trade Representative Section 301 review proposes additional tariffs of up to 12.5% on imports from about 60 economies, including India, creating a live downside risk to the talks.
- If completed, the first-phase agreement would raise market access, tighten customs and non-tariff rules and deepen cooperation on strategic sectors such as AI, semiconductors and critical minerals, and it would shape the broader Bilateral Trade Agreement negotiations that follow.