India-US Trade Talks: First Round Concludes, Tariff Uncertainties Remain

India and the US on Saturday wrapped up the initial round of discussions for a bilateral trade agreement. Led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, the talks are reportedly making steady progress. Experts now expect the two sides to move into detailed sectoral discussions in the coming weeks, aiming to further refine the terms of the agreement.

The government, in an official statement, said, “In order to realise the shared objective of promoting growth that ensures fairness, national security and job creation, both sides have through four‑day discussions in New Delhi broadly come to an understanding on the next steps towards a mutually beneficial, multi‑sector bilateral trade agreement (BTA), with the goal to finalise its first tranche by fall 2025.”

Negotiators from both countries have emphasised priority areas for increasing market access, including reducing taxes and non‑tariff barriers as well as strengthening supply networks.

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No Clarity on Tariffs

After the first round of talks ended, no clear conclusion was reached on reciprocal tariffs, as the commerce ministry remained silent. There is still no word on whether the US will modify its proposed retaliatory duties set to go into effect on April 2, which has raised concerns within the industry.

Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), said, “This week's talks served as an icebreaker, with substantive negotiations expected to begin later. However, despite the ongoing FTA discussions, the US continues to impose additional tariffs on Indian exports such as steel, aluminium, automobiles and auto parts. Also, it is not clear if the FTA talks are about only India making unilateral tariff concessions or if the US will also cut its tariffs.”

While specific agreements have not been published, the ministry confirmed that "productive exchanges" took place regarding efforts to extend market access, lower both tariff and non‑tariff barriers and enhance supply chain collaboration.

“The continuation of these tariffs raises questions about the balance of the negotiations. While both sides engage in dialogue, Washington’s hardline trade stance suggests a disparity in bargaining power. As the talks progress, observers are left to ask: is this a step toward genuine partnership—or just another form of economic pressure,” Srivastava added.

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India and the United States expressed satisfaction with the meeting's outcomes and reaffirmed their commitment to deepening their future partnership. Both sides look forward to building on this progress in the coming months to finalise the bilateral trade agreement, ensuring it aligns with their shared goals of prosperity, resilience and mutual benefit.

Despite the positive momentum in economic relations, uncertainty remains regarding reciprocal tariffs. Speaking on Saturday, former US President Donald Trump acknowledged progress in the negotiations and hinted that exemptions might be offered to "a lot of countries" when the tariffs are scheduled to take effect on April 2.