Overview
- A senior US official told Reuters on Wednesday that negotiators have the text ready and the agreement could be signed in three to four months.
- The official said the remaining hurdle is the United States finishing Section 301 investigations, including a probe covering about 60 countries that is expected to conclude imminently.
- President Donald Trump has announced a phased tariff plan for imported generic medicines that gives a two-year exemption from August 1 followed by 100% and then 200% tariffs, raising immediate concerns for exporters.
- Separately, Washington has proposed tariffs of up to 12.5% tied to forced-labour allegations, a separate measure that could affect India and other trading partners even if the bilateral deal proceeds.
- India’s pharma sector is particularly exposed because US-bound drug shipments were about $9.7 billion in 2025, and the tariff moves have already hit drugmaker stocks and sharpened diplomatic urgency in talks.