India-US Trade Deal “Not Too Distant,” Says US Commerce Secretary
Good news on the India-US trade front! US Commerce Secretary Howard Lutnick announced Monday that a trade deal between the two nations is likely in the “not too distant future.” He believes both countries have found a “place that really works.”
This optimistic outlook comes as US officials visit India this week to iron out an interim trade agreement. India’s Commerce Minister Piyush Goyal recently pushed for these talks in Washington.
While Lutnick is a “great fan” of India, he’s keen to see India’s tariffs brought down to a “reasonable and appropriate” level. India, meanwhile, is seeking a full exemption from the US’s 26% tariff on its goods, especially with the July 9 deadline for avoiding sweeping tariffs looming.
Ultimately, both countries aim to more than double bilateral trade from $191 billion to $500 billion by 2030, building on plans to negotiate a Bilateral Trade Agreement (BTA) by late 2025.
Option 2 (Focus on Key Players and Deadlines)
India-US Trade Agreement: Progress Made, Deal Expected Soon
Washington D.C. & New Delhi – The prospect of a US-India trade deal looks brighter than ever, with US Commerce Secretary Howard Lutnick stating Monday it’s likely in the “not too distant future.” He emphasized that the two nations have discovered “a place that really works” for both their interests.
This positive update comes amidst active negotiations. A team of US officials is currently in India this week, working on a proposed interim trade agreement. This follows Union Commerce Minister Piyush Goyal’s recent visit to Washington, where he pushed for swifter progress.
Key Points from Lutnick and Goyal:
- Tariff Negotiations: While Lutnick praised India, he voiced concerns over New Delhi’s use of tariffs. He’s hopeful about “Bringing them down to a level that is reasonable and appropriate so we can be great trading partners with each other.”
- India’s Stance: India is actively seeking a complete exemption from the additional 26% tariff imposed by the US on its goods, particularly as a July 9 deadline set by President Trump for avoiding sweeping tariffs approaches. Minister Goyal noted that both countries would continue bilateral efforts to address these issues, maintaining “both the US and India share good relations.”
- Preferential Market Access: Minister Goyal highlighted that the aim is to provide preferential market access to businesses in both countries.
- Long-Term Vision: The current talks build on a broader vision. In February, President Trump and Prime Minister Narendra Modi announced plans to negotiate the first phase of a mutually beneficial Bilateral Trade Agreement (BTA) by September-October 2025. The ultimate goal is to more than double bilateral trade from the current $191 billion to a significant $500 billion by 2030.
The coming days will be crucial as both sides work to finalize an interim trade agreement before the July 8 deadline.
Option 3 (Slightly More Explanatory and Forward-Looking)
Big Steps Towards an India-US Trade Deal: A “Not Too Distant Future”
The diplomatic wheels are turning, and a significant trade deal between India and the United States appears to be on the horizon. This exciting prospect was highlighted by US Commerce Secretary Howard Lutnick on Monday, who expressed strong confidence that an agreement could be reached in the “not too distant future,” as both nations have found common ground that “really works.”
This optimism is well-timed, as a team of US officials is actively engaging with their Indian counterparts this week to iron out the details of a proposed interim trade agreement. This follows recent proactive discussions, including Union Commerce Minister Piyush Goyal’s trip to Washington to accelerate the trade talks.
Addressing the Tariff Hurdle:
One of the primary areas of focus remains tariffs. While Secretary Lutnick conveyed his admiration for India, he emphasized the importance of reducing tariffs to a “reasonable and appropriate” level to foster stronger trade partnerships. On India’s side, a key demand is a complete exemption from the additional 26% tariff imposed by the US on certain goods, especially given President Trump’s looming July 9 deadline for avoiding broader tariffs. Both ministers have indicated a commitment to bilateral efforts to resolve these tariff-related concerns.
Building a Billion-Dollar Future:
The immediate goal is to finalize an interim trade agreement before July 8. This shorter-term accord is a stepping stone towards a much more ambitious objective: more than doubling the current $191 billion in bilateral trade to a staggering $500 billion by 2030. This overarching goal was set in February when President Trump and Prime Minister Narendra Modi announced plans to negotiate the first phase of a comprehensive Bilateral Trade Agreement (BTA) by late 2025. The ongoing discussions are vital for laying the groundwork for this long-term economic partnership.